01.21.12
Posted in Business and Economy, International Organisations at 6:51 pm by Robert Klien
As it has been said recently, the International Monetary Fund has released its report on Seychelles’ 4th programme review. In accordance with the review, the jurisdiction’s economic prospects are good. However, the report warns of risks from the crisis in Europe.
The Fund hails Seychelles’ performance with the IMF executive board’s deputy managing director and acting chair Min Zhu saying: “Aided by sound macroeconomic policies and timely structural reforms, the Seychelles economy rebounded strongly from the crisis of 2008-09. Medium-term prospects are good, but downside risks exist due to the crisis in Europe. Inflation has picked up recently, reflecting the delayed pass-through of global food and fuel price increases, but remains broadly in check.”
He noted that “safeguarding debt sustainability is critical for sustaining the gains from macroeconomic stabilization”. Also, he mentioned that “the restructuring of the loss-making national airline and increases in utility tariffs to cost-recovery levels will help achieve a sounder fiscal position while creating space for needed infrastructure investments”. So, developing a well-targeted social safety net will be vital to protect vulnerable groups.
According to Min Zhu, “Structural reforms continue to focus on improving public financial management and fostering private sector-led growth. In the financial sector, efforts should focus on limiting the role of state-owned institutions, strengthening competition, enhancing governance and transparency, and improving banking intermediation.”
Permalink
01.13.12
Posted in Business and Economy, International Organisations, Seychelles banking, Tourism industry at 6:46 pm by Robert Klien
The International Monetary Fund (IMF) has approved the 4th review of the Seychelles Extended Fund Facility (EFF) and will release USD 4.8 million. This was announced by Central Bank governor Pierre Laporte and principal secretary for Finance Ahmed Afif in a press conference held on January 12.
It was said that the IMF board is satisfied with the review carried out by its staff in November 2011 as “Seychelles has met all the benchmarks of its economic review programme under the EFF”.
According to Laporte and Afif, the IMF board has expressed concern about the potential impact on the tourism sector because of what is happening in Europe, which is the jurisdiction’s main tourism market, as well as because Air Seychelles has stopped direct flights to Europe.
In March 2012, the IMF mission is expected to return for the 5th review under the programme and then Seychelles is planning to have met set targets.
Permalink
12.13.11
Posted in Business and Economy, International Organisations, International relations at 4:42 pm by Robert Klien
Seychelles has attended the 1st Forum on China-Africa Scientific and Technological Cooperation that has been recently held in Beijing.
The jurisdiction was represented by the principal secretary in the Department of Industry, Lucy Athanasius, and the director of Industry Policy Analysis and Export Promotion, Barry Assary.
The forum was launched as an initiative of the FOCAC Summit held in Sharm El Sheik-Egypt in November 2009. It also recommended the creation of the China-Africa Science and Technology Partnership Programme (CASTEP), by the Chinese Ministry of Science and Technology, with a view to further enhance cooperation and exchanges in science and technology between China and Africa.
At the opening of the forum, Seychelles’ Ambassador in China, Philippe Le Gall, expressed his satisfaction at Seychelles’ participation at high level and described the forum as an interactive platform to get more familiar with the recent progress made by China in science and technology as well as to interact with government officials, researchers, scientists, and industry leaders.
Permalink
10.18.11
Posted in Business and Economy, International Organisations, Seychelles government at 2:59 pm by Robert Klien
On October 17, an International Monetary Fund (IMF) team led by its head to Seychelles, Jean Le Dem, visited President James Michel to appraise him on how they find the economic reform going. Also, Vice-President Danny Faure, who is also the Minister for Finance, Central Bank Governor Pierre Laporte and principal secretary for Finance and Trade Ahmed Afif were present during the meeting.
Mr Le Dem said that the programme’s performance was good and the jurisdiction has met all the quantitative criteria as at the end of June 2011. He said that the Fund will next review the structural reform programme and see where it is necessary to accelerate the programme. Also, it will discuss Seychelles Budget 2012 including the situation with Air Seychelles.
Mr Le Dem noted: “We also discussed the inflation issue which has risen a little to 3.3% in September and the chances for price increases but also how this can be mitigated through the social welfare agency”. He stated that the reforms have stabilised the economy of the offshore jurisdiction as well as stressed that it is needed to ensure the private sector continues to grow in order to support the economy.
Permalink
10.02.11
Posted in International Organisations, International relations, Seychelles government at 2:52 pm by Robert Klien
Seychelles and Guernsey are to sign a Tax Information Exchange Agreement (TIEA).
Guernsey has announced that it will conclude 6 bilateral Tax Information Exchange Agreements (TIEAs) negotiated with members of the Southern African Development Community (SADC), in line with the Organization for Economic Co-operation and Development’s (OECD) priority of working closely on tax issues with developing countries. The tax treaty between Guernsey will be signed. Also, Guernsey is to sign the agreements on sharing tax information with Botswana, Lesotho, Malawi, Swaziland and Zambia.
Ron van der Merwe, Chair of the Tax Agreements Working Group of the SADC, said: “The multi-party TIEA negotiations between 6 SADC member states and Guernsey is considered to be a major step forward in creating a basis for exchange of information for SADC members. This was a first opportunity for SADC and it is hoped that it will be the start of an ongoing programme in the negotiation of TIEAs by member states.”
Permalink
09.24.11
Posted in International Organisations at 12:39 pm by Robert Klien
Dr Nasri Abu Jaish, new Palestinian ambassador to Seychelles, presented his credentials to President James Michel at State House on September 20.
The Palestinian diplomat is the 4th Palestinian ambassador to be accredited to Seychelles since Seychelles and Palestine established diplomatic relations in 1980.
Dr Jaish is based in the Tanzanian capital Dar es Salaam.
Dr Jaish said that the two countries have a long-standing and friendly relationship, and he hopes to build on this. He noted: “I hope to promote and strengthen this friendly relation between Palestine and Seychelles, between the Palestinian people and the people of Seychelles in many sectors like culture, tourism and other areas to be explored by the two countries.”
Dr Jaish discussed several actual issues with President Michel and Vice-President Danny Faure.
Permalink
09.21.11
Posted in International Organisations at 12:39 pm by Robert Klien
Alexandre Vassalo is the new Portuguese ambassador to Seychelles.
This follows presenting his credentials to President James Michel at State House on September 20. Also, he called on Vice-President Danny Faure for more talks.
Mr Vassalo is is based in Nairobi, Kenya. He diplomat replaces Luis Lorvao, who was accredited here in 2007.
The diplomat said that he will work to further strengthen the cooperation between Portugal and Seychelles in various spheres during his mandate. He noted: “Portugal and Seychelles have had cooperation agreements in various fields in the past and the two countries have supported each other on the international arena. I hope to continue with this”.
Seychelles’ President and Portuguese diplomat discussed bilateral issues and challenges that the 2 jurisdictions are facing. Mr Vassalo said that Portugal supports Seychelles in the fight against piracy as it understands its threats.
Permalink
06.20.11
Posted in Business and Economy, International Organisations at 4:33 pm by Robert Klien
The Executive Board of the International Monetary Fund (IMF) has completed the 3rd review under the 3-year Extended Arrangement, which became effective on December 23, 2009 in the amount of SDR 19.8 million.
As the review has been completed, it makes available to disburse SDR 3.52 million, which is about USD 5.6 million.
In 2010, the economy of Seychelles recovered strongly from the debt and balance of payments crisis in 2008 that was followed by global recession of 2009. Economic growth was driven by really high foreign direct investment (FDI) as well as a rebound in tourism. Inflation in the jurisdiction remained near 0. The offshore jurisdiction continued to rebuild its international reserves and reduce public debt. The economic program supported by the Extended Fund Facility (EFF) remains on track and all quantitative performance criteria at end-December 2010 were met.
In 2011, the policy mix under the program has been adjusted, which was in response to the global commodities price shock and the recent financial difficulties of Air Seychelles. The IMF expects that fiscal policy will be slightly looser to accommodate additional priority spending, while maintaining the targeted progress toward external stability and debt sustainability. The Fund stated that structural reforms are expected to concentrate on enhancing the financial sector by means of modernizing its legal and regulatory framework and restructuring and/or privatization of several state-owned financial institutions.
Permalink
06.16.11
Posted in Business and Economy, International Organisations at 8:03 am by Robert Klien
A declaration has been signed by the government of Seychelles has signed to launch negotiations for establishing a single integrated market for the 26 countries of the Common Market for East and Southern Africa (Comesa), East African Community (EAC) and the Southern African Development Community (SADC).
The declaration was signed after the conclusion of the 2nd Comesa-EAC-SADC tripartite summit. The summit was held on June 12 in Johannesburg, South Africa, under the theme “Deepening Regional Integration”. A Seychelles delegation lead by Vice-President Danny Faure took part in strategy discussions and endorsed the plan of action at the event.
Mr Faure, who is not only Vice-President but also the Minister for Finance and Trade, said: “This landmark initiative is an important step towards simplifying trade in the region and easing some of the administrative obligations for countries like Seychelles, who are members of more than one of these regional economic communities”.
Setting up a tripartite free trade area will provide a possibility to create a larger, integrated market with a combined population of approximately 700 million people, effectively creating the largest free trade area worldwide. This will encourage intraregional trade by establishing a wider market to increase investment flows, enhance competitiveness as well as develop cross-regional infrastructure.
It should be noted that the initiative is the response to a call from the African Union for regional economic communities to harmonise and better coordinate policies and programmes, which includes contributing to poverty reduction, economic growth and sustainable development for the continent.
Also, the summit adopted a roadmap for the setting up of the free trade area, with phase 1 due to be achieved by 2015.
Permalink
04.06.11
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.
Permalink
« Previous entries Next Page » Next Page »