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'Government has made impressive progress', said head of IMF Mission

November 08, 2021

“The Government has made impressive progress in implementing the IMF-supported program and restoring macroeconomic balances,” says IMF Mission Chief, Boriana Yontcheva.

The IMF Mission, headed by Ms. Yontcheva, was in the country between 23rd October and 08th November, 2021, to assess Seychelles’ performance at end-September for the first program review under the Extended Fund Facility (EFF) Arrangement.

In a press release issued today, following the end of the mission, the IMF staff, said the following:

“The government has made impressive progress in implementing the IMF-supported program and restoring macroeconomic balances. All end-August 2021 quantitative targets under the program were met—some, including the fiscal primary balance target, by a wide margin. The broader structural reform agenda is also moving ahead”.

Speaking to the media, this afternoon, Minister for Finance, Economic Planning and Trade, Naadir Hassan said that the performance of Seychelles ‘was a lot more positive than what was anticipated.’

“We have been able to meet all the set benchmarks, which means our program is on track, and if we continue with the same level of discipline, we can project that our recovery will be quicker, than we had anticipated.”

Ms. Yontcheva, reiterated the position of Minister Hassan.

“I want to say how impressed we are with the turnaround, both on the side of the economy and also on the policies implemented by the government.”

Despite, the ‘impressive performance’, Minister Hassan is still cautious.

“It is important that we stick to this economic reform program, which is aimed at supporting the country’s economy to recover, which will allow us to bring about new policies which will alleviate the current situation of the people.”

The IMF Staff mission has also pointed out that Seychelles still face many challenges.

“Seychelles’ open economy remains highly vulnerable to external shocks, and climate change. Ensuring a buildup of buffers against shocks remains critical in the current global environment, and requires the continuation of prudent macroeconomic policies and the safeguarding of international reserves.”

Minister Hassan thanked the staff of the Ministry, and Central Bank of Seychelles as well as all Seychellois who have worked hard to ensure that our country’s recovery.

“I will keep saying this, at the beginning of the year, our economic and financial situation was critical, but today I can say that we are no longer in this situation, but we have not fully recovered, the road ahead is still long. There’s still a lot of work to be done, but we are on the right track."

The findings of this 1st Review under the EFF will be compiled in a report, and presented to the IMF’s Executive Board. When approved, a 2nd disbursement under the EFF will be effected.

The IMF Executive Board approve a support program for Seychelles in late July 2021.

Click on the link below to access the IMF Staff mission press release.

http://www.finance.gov.sc/uploads/files/IMF%20Press%20Release%20at%20end%20of%201st%20Review%2008.11.2021.pdf

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