December 22 2010 -- The Ministry of Finance announced today that the Executive Board of the International Monetary Fund (IMF) approved the second program review and financing assurances review of the Seychelles' economic reform program supported by a three-year extended arrangement under the Extended Fund Facility (EFF).
The IMF, in a press statement yesterday, commended Seychelles for its strong stabilization efforts which have helped the economy overcome the 2008 balance of payments and debt crisis and the recent global recession through a combination of foreign exchange market liberalization and floating of the rupee, exceptional fiscal adjustment, enhanced management of public finances and the central bank and successful external debt restructuring.
In the statement, the IMF said it supported Seychelles' efforts to invest in infrastructure in 2011 as well as to do priority recruitments in the public sector whilst remaining within debt sustainability limits.
They recognized the ongoing effort to rationalize the existing tax system, including preparations for the launch of a value-added tax in mid-2012, and measures to improve transparency and efficiency of the budget.
It added that further efforts are now required to strengthen the governance and financial viability of the national airline and the public utility company.
The statement also added that while the banking system appears healthy, efforts to promote competition among banks, reduce state intervention in the financial system, and enhance disclosure requirements and consumer protection will promote credit growth and intermediation.
The Vice President and Minister and of Finance Danny Faure stated that he was proud of this outcome; he stated that Seychelles was highly committed to reform and that we must not become complacent despite continued success.
He said 2011 would also be a challenging year and all Seychellois must continue to work hard and ensure the country remains productive and efficient so that we can continue to fly the Seychelles flag high.
He thanked the people of Seychelles for this achievement and added that he looked forward to their continued support to ensure that Seychelles stayed on the right footing always.