04.06.11

Seychelles’ Economic Programme is on track, IMF says

Posted in Business and Economy, International Organisations, International relations at 6:51 pm by Robert Klien

A visit to the Seychelles that was aimed to conduct discussions for the 3rd programme review under the Extended Fund Facility (EFF), has just been completed by an International Monetary Fund (IMF) mission.

The delegation that represented the IMF was led by Jean Le Dem. The IMF mission met with President James Michel, Vice President Danny Faure, Governor of the Central Bank of Seychelles Pierre Laporte, Principal Secretary of Finance Ahmed Afif, as well as other senior government officials, private sector representatives and parliamentarians.

According to Mr Le Dem, the Seychelles authorities go on making progress in the reform programme.

The IMF noted that economic recovery in 2010 strengthened – real GDP growth is likely to have exceeded 6% and consumer price index (CPI) inflation was almost 0. So, despite some technical delays in government payments to one parastatal, the programme is on track.

Mr Le Dem indicated that the modernization of the tax system is continuing, which includes important steps toward the launching of a VAT, scheduled for mid-2012. The introduction of the value-added tax is aimed to improve integration in the economy, broadening of the base, elimination of cascading, and increased efficiency and fairness.

The IMF EFF arrangement was approved on December 22, 2009 for SDR 19.8 million or USD 30.9 million. SDR 9.2 million out of this sum has so far been disbursed. SDR 3.52 million should be available upon completion of the 3rd review expected to be carried out in May 2011.

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