Seychelles’ economic reforms helped to handle 2 crises

Posted in Business and Economy at 7:09 pm by Robert Klien

According to an economic symposium in Seychelles, economic reforms helped the jurisdiction handle both a severe debt crisis and the global financial crisis. A decision to float the exchange rate was the most critical move in Seychelles’ policies to address the crises that was included in Seychelles’ 2008 reform program.

The 1st Economic Symposium for Parliamentarians, held in Seychelles, brought the legislators together with the International Monetary Fund (IMF) to take stock of achievements and assess remaining vulnerabilities facing the economy. The event held on October 20 was jointly organized by the Seychelles authorities and the IMF. It also discussed global and regional economic prospects and priorities for small island economies.


Seychelles to start talks on joining WTO

Posted in International Organisations at 4:34 pm by Robert Klien

Last year, Seychelles plans to rejoin the WTO were discussed.

Charles Morin, chief negotiator for Seychelles’ accession to the World Trade Organisation (WTO), said that negotiations of the terms under which Seychelles is to join the WTO will begin this month.

He announced plans to submit Seychelles’ offers to the WTO. The 1st working party will enter negotiations with the organisation later this month.

Mr Morin said: “There is no way of saying what to expect. We will have to see what the WTO member states are requesting from us and to what level they expect to see our goods and services offers open up”. He also noted that the 153 member countries of the WTO have been looking at the Seychelles’ Memorandum of Foreign Trade Regime (MFTR) and asking questions about it. The United States, Canada, Australia and the EU nations were the main countries to ask questions about Seychelles before its joining the WTO.


IMF says Seychelles’ economy continues to recover

Posted in Business and Economy, Diplomatic missions, International Organisations at 3:19 pm by Robert Klien

According to the International Monetary Fund (IMF), the economy of Seychelles is expected to grow by more than 6% in 2010 due to its government’s track record of sound fiscal and monetary policy management.

In May 2010, the IMF suggested that the economy of Seychelles has shown strong resilience to global financial shocks of the year 2009 and its economy is recovering faster than expected from measures taken to adjust it. In October 2010, the IMF mission assessed the Seychelles’ economy and stated that the Seychelles’ economy continues to recover strongly.

Jean Le Dem, leader of the IMF mission, said: “Its far-reaching economic program, supported by the IMF, under which the government removed all exchange restrictions, floated the currency, liberalized interest rates, introduced a modern monetary policy framework, and significantly tightened fiscal policy, has borne fruit. Inflation has fallen from over 30% in 2008 to low single digits and the exchange rate has stabilized. It also helped Seychelles successfully restructure most of its external debt obligations, returning Seychelles to a path towards sustainable debt levels.”

Le Dem suggested that prospects for 2011 are favourable. He also urged the jurisdiction to continue with its ambitious agenda of structural reforms, including the modernization of the tax system aimed to usher in a value-added tax (VAT). The government launched a comprehensive reform of the tax system with the 2010 budget, of which the 1st stage was the introduction of a revised Business Tax Act from January 1, 2010, while the 2nd stage has been the introduction, from July 1, 2010, of a withholding-based personal income tax (PIT) on wages to replace social security contributions. VAT will be introduced in Seychelles from January 1, 2012.