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IMF and Seychelles reach staff agreement upon conclusion of 3rd Review under EFF and RSF Programmes

October 01, 2024

The International Monetary Fund (IMF) has completed its third review mission under the Extended Fund Facility and Resilience and Sustainability Facility programmes, with the Head of Mission, Mr. Todd Schneider saying "the authorities continue to make progress in implementing the EFF-supported program. All end-June 2024 quantitative performance criteria and indicative targets under the program were met."

Speaking to the local media this morning, Mr. Schneider noted that while economic growth 'appears slower than anticipated', due primarily to the 'lower tourist arrivals', the 'fiscal performance in the first half of 2024 (on the other hand) was tighter than budgeted, driven by robust tax collection.'

IMF expects the tourist arrivals to show 'some recovery' at the 4th quarter of the year.

As for Year-on-year inflation, this was about 0.5 percent as of August, 'reflecting stable utility rates and the impact of stable or declining prices for fuel and other commodities'.

The Mission was in Seychelles between 18th September and 01st October, and upon its conclusion, a staff level agreement has been reached between the Mission and the Government.

"This agreement is subject to approval by the IMF’s Executive Board. Approval would release financing of SDR 9.2 million, equivalent to $12.3 million."

Minister Naadir Hassan has welcomed the staff agreement, saying the 'majority of the reforms under the programme are on track,  such as the structural benchmarks and the quantitative performance targets.'

Click on the link below to read the full IMF Mission press release.

https://www.imf.org/en/News/Articles/2024/09/30/pr-24352-seychelles-imf-seychellois-authorities-reach-agreement-3rd-rev-under-eff-rsf

 

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