12.21.13

Seychelles marks 5 years of successful economic transition

Posted in Business and Economy, Seychelles government, Seychelles offshore jurisdiction at 5:14 pm by Robert Klien

With the approval of the final review of its IMF-backed economic reform program, Seychelles marks a major milestone in its transition from a crisis economy to the economy led by more stable and private sector.

The Seychelles was struggling with serious problems 5 years ago such as an overvalued fixed exchange rate, plummeting foreign exchange reserves, a bloated and pervasive public sector, and an unsustainable debt burden-all within the global financial crisis.

On October 31, 2008, President James Michel announced a reform program that liberalized the exchange rate regime, slashed public spending and employment, and redefined the role of the state in the economy.

At a conference on the anniversary of the announcement in 2013, Michel described the reform program as “one of the most complete and comprehensive macroeconomic and structural reform programs that the world has experienced in recent times.”

At this conference, IMF African Department Deputy Director David Robinson declared Seychelles’ achievement as a “tremendous turnaround.” The incoming IMF mission chief, Marshall Mills, highlighted that “Seychelles’ ability to implement such a wide-ranging program of reform while preserving social stability is truly impressive.”

The current 4-year Extended Fund Facility came to an end, but the IMF will continue to support Seychelles on its development and growth stage.

Comments are closed.