12.26.09
Posted in International relations, Seychelles government at 8:02 pm by Robert Klien
On December 19, 2009, the Seychelles government said that a new USD 31 million loan from the International Monetary Fund (IMF) would support the 2nd wave of reforms on the heavily indebted Indian Ocean archipelago.
IMF approved the loan and cancelled an existing 2-year standby arrangement (SBA) for USD 26 million which had a year outstanding.
According to Finance Minister Danny Faure, the new Extended Fund Facility (EFF) would kick in immediately. He said: “The EFF will bring funds of $31 million to support our medium term reform strategy which is looking at debt restructuring, public sector reform and preserving the macroeconomic stabilisation”.
The Indian Ocean archipelago launched an exchange offer on the USD 230 million bond and 3 other debt instruments aimed to help place it on a more sustainable footing.
It should not be neglected that the impact of the global crisis and decades of unsustainable spending had left Seychelles close to collapse. It is expected that in 2009 the tourism-driven economy will contract by 7.5% before re-bounding to 4% in 2010.
According to Central Bank Governor Pierre Laporte, disciplined monetary policy and aggressive cuts in government spending had stabilised the economy faster than had been predicted.
It should be noted that Seychelles’ external debt topped USD 800 million at the beginning of 2009.
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12.22.09
Posted in International relations, Seychelles government at 6:49 pm by Robert Klien
On December 22, 2009, it was announced that the Seychelles and the United Arab Emirates (UAE) signed an agreement for military cooperation.
The agreement was signed on December 21 by Seychelles’ Minister of Environment Joel Morgan and UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan.
Sheikh Abdullah welcomed the visiting Minister of Seychelles and expressed his praising of the progressive ties of friendship and cooperation between the countries.
The agreement provides for promotion and facilitation of military cooperation between the Seychelles and the United Arab Emirates in various fields.
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12.13.09
Posted in Seychelles government, Seychelles legislation at 6:42 pm by Robert Klien
The Seychelles’ Ministry of Finance has announced that the rate of trades tax on commercial and specialised vehicles will remain unchanged in 2010. It will be 25% and 0% respectively, but the tax on buses will be 5%.
When announcing the 2010 Budget Address in the beginning of December, Minister for Finance Danny Faure said that, as from January 1, 2010, rates of trades tax on passenger motor vehicles will be reduced across the board from between 75% and 225% to 25%.
Also, an excise tax will be introduced to offset some of these trades tax reductions.
It should be noted that the decision on taxes is in line with the government’s intention to bring Seychelles’ tax regulations up to international standards.
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12.09.09
Posted in Seychelles government at 12:33 pm by Robert Klien
On December 9, Seychelles for the 1st time celebrated the International Anti-Corruption Day.
Though the United Nations took up the fight against corruption long ago, and its special day was initiated in 2003, the Public Officers’ Ethics Commission in Seychelles came into force only in 2008. The Commission organised the event.
The commission’s chief executive Lekha Nair has joined the battle against corruption with the help of the Commonwealth a 1-day symposium held at Le Méridien Barbarons Hotel. This event was aimed to shed light on anti-corruption strategies.
According to Nair, the new commission is playing a role as a political watchdog, so anti-corruption strategies will be pointed out. Law-enforcement agencies, policing and monitoring units, and oversight institutions such as the judiciary, as well as members of the National Assembly will attend the symposium.
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12.04.09
Posted in Seychelles government, Seychelles legislation at 12:24 pm by Robert Klien
Legal action is among new measures that can be taken by the Employment Department in order to ensure employers comply with the minimum wage regulation set up in January 2008.
The new measures are necessary now as a rise of R1 an hour in the minimum wage has been announced. The new rate will be R16.50 an hour as from July 2010 – this increase was announced by Minister for Finance Danny Faure during his 2010 Budget Address.
Director General for employment Jules Baker said that despite the regulation, there are still complaints being received from workers who are not being paid properly. If found guilty, employers will be fined from R1,000 up to R10,000 depending on the offence. Those who go on refusing to comply with the regulation will pay an extra fine of R200 a day.
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11.29.09
Posted in International relations, Seychelles government at 12:03 pm by Robert Klien
On November 25, Chinese ambassador Wang Weiguo and Seychellois Finance Minister Danny Faure signed an agreement for the equivalent of a USD 6 million grant.
This money will be used for financing a new Supreme Court building at Ile du Port that will be called the Palais de Justice.
The signing ceremony took place at Liberty House. Among thos who attended the ceremony were Justice Duraikannu Karunakaran – standing in for Chief Justice Frederick Egonda-Ntende – Supreme Court master and registrar Melchior Vidot, technical adviser in the Ministry of Foreign Affairs Jeanette D’Offay, director general in the ministry Conrad Mederic as well as top officials from the Embassy of Chinese.
The new building will be started in April. Its completion is to take 18 months. It will house 8 Supreme Court rooms and an extra one for the Court of Appeal, but not the Magistrates’ Courts, for which other arrangements will be made.
Faure expressed his gratitude to the government and people of China and noted that they have so far contributed to the education, health and housing sectors. Also, he said that the Chinese government is funding the new National Assembly building.
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11.25.09
Posted in Diplomatic missions, International relations at 3:19 pm by Robert Klien
A team from the African Development Bank (AfDB) has recently ended a 2-day visit to Seychelles. The visit was aimed at discussing new bonds to be issued.
Advance talks have been held by the mission with the authorities. The talks regarded request for a partial guarantee to be attached to the new bonds. These will result from Seychelles’ forthcoming external debt exchange offer. As part of this offer, holders of eligible claims will be invited to tender their instruments for new bonds – these are holders who will include the 9.125% Eurobond due in 2011.
The AfDB is expected to complete its review of the partial guarantee proposal in the next few weeks. The government intends to launch the exchange offer shortly.
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11.22.09
Posted in Business and Economy, International relations at 12:47 pm by Robert Klien
On November 18, President James Michel held bilateral talks with the Lebanese President, General Michel Sleiman.
During this working visit to Beirut. the President aimed at strengthening cooperation and bilateral relations with Lebanon. Also, he intended to exchange ideas on economic development and investment opportunities.
Michel said that Seychelles and Lebanon have much in common in the way they manage economies, environment and tourism marketing. Both jurisdictions have strong tourism industries, and exchanging knowledge and information in this field could be useful for both countries.
The presidents discussed the piracy in the western Indian Ocean and touched upon the issue of the way the global economic crisis influences the tourism industries of both countries.
Michel spoke of the Seychelles’ success in its economic reform programme as well as stressed its achievements in environmental sustainability.
According to General Sleiman, following a slowdown in Lebanon’s economy, it is starting to experience growth in many fields.
The presidents exchanged opinions on this week’s Lebanon 2020 National Summit where Michel was to be a keynote address.
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11.19.09
Posted in Business and Economy, International relations at 11:49 am by Robert Klien
The World Bank Board of Executive Directors has endorsed the Interim Strategy Note (ISN) for re-engagement with Seychelles and has approved a Development Policy Loan (DPL) of EUR 6.5 million to the jurisdiction.
After 17 years, the Interim Strategy Note is the 1st for Seychelles and lays out a 2-year Bank re-engagement strategy for the country.
The DPL that was approved by the Board will assist the country in implementing the economic reform programme.
It is an International Bank for Reconstruction and Development (IBRD) fixed spread facility with a 25.5 years maturity.
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11.16.09
Posted in Business and Economy, International relations at 11:49 am by Robert Klien
A delegation left Seychelles in order to take part in the World Travel Market (WTM). The event was held in London on November 9-12.
The delegation was led by Vice-President Joseph Belmont and Seychelles’ director for tourism marketing Alain St Ange. Seychelles’ presence at the trade fair was significant as it was a message to the world that Seychelles is back in the United Kingdom.
The Seychelles Tourism Board (STB) is reopening an office in London after it was closed in 2008. The market has suffered, so the delegation was working hard during the 4 days at the WTM in order to address the lower-than-expected visitor arrival figures from the United Kingdom. Today, visitor arrivals from the United Kingdom stand at 18% below the 2008 figure.
Also, Mr Belmont and Mr St Ange met the British media and answered their questions.
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