SFP Leader Was Right. Another Three Years Under The IMF For Seychelles

An IMF staff mission led by Mr. Marshall Mills visited Victoria during February 26-March 11, reaching agreement with the Seychellois authorities on their request for a new 3-year arrangement under the Extended Fund Facility, in support of the economic and financial program of the government and Central Bank of Seychelles. Subject to IMF management approval, the staff-level agreement is expected to be submitted to the IMF Executive Board for its consideration by end-June 2014. Under the arrangement, Seychelles would be able to access up to SDR 11.5 million (about US$17.8 million), subject to semi-annual reviews.
The mission met with His Excellency President James Michel, Vice President Danny Faure, Minister of Finance, Trade, and Investment Pierre Laporte, and Governor of the Central Bank of Seychelles Caroline Abel, as well as members of the National Assembly and representatives of the private sector and civil society.
At the conclusion of the visit, Mr. Mills issued the following statement:
“The objectives of the IMF-supported program that concluded last December were largely achieved. That program aimed to place Seychelles firmly on the path to fiscal and external sustainability, by reducing public debt, rebuilding reserves, and implementing structural reforms to raise growth performance and reduce fiscal risks. Macroeconomic performance last year continued to improve. Growth accelerated to 3.5 percent in 2013, supported by strong policies and robust tourism earnings that enabled the Central Bank of Seychelles to continue to rebuild official external reserves. Inflation fell to 3.4 percent at the end of the year. The authorities also attained their target of a strong fiscal primary balance and remain on track to meet their objective of reducing public debt below 50 percent of GDP by 2018.
“Notwithstanding remarkable progress in recent years, Seychelles still faces vulnerabilities and pressures, as a small island economy in a challenging global economic environment. The authorities have requested a program to support their efforts to consolidate macroeconomic stabilization, enhance resilience, and foster sustained and inclusive growth. A new generation of reforms will aim to combine continued reduction in public debt with efforts to increase investment spending and to enhance the performance of the public sector. Under the IMF-supported program, reserve coverage will continue to strengthen, and the monetary policy framework will become more forward-looking, continuing to target the maintenance of low inflation. Structural reforms will buttress the foundations for growth and address structural risks to stability, including continuing improvements in the oversight of state-owned enterprises.
“With the strong macroeconomic policies under the program, IMF staff expects the economy to continue to strengthen this year, despite an uncertain global economic environment. Growth is projected to reach 3.7 percent.”



  1. Please ask all freedom loving citizens to petition the IMF not to grant the Extended Fund Facility. The Government has pulled the wool over the IMF delegation.

  2. Seychelles cannot register higher economic growth with unjustifiably high rates of electricity and water tariffs for the commercial sector, high incidence of taxes on VAT 16.5 % and High incidence of commission by DMC, 20% and Tour Operators 20% on a room night.
    Just between GOS taxes on a room night 16.5 % and Expedia online booking fees 25%, 41.5% of a room rate online, goes to GOS and Expedia. A hotel in Seychelles uses the remaining 1/2 or so of revenue to pay its operational costs.
    This is one reason why growth is precarious, until these issues are resolved.

  3. Additionally, The GOS has imposed more fees and taxes to process GOP workers that are needed in Tourism Trade and elsewhere, because Seychellois are not qualified for the job, or cannot keep the job, or they do not want the job.
    Health - 350.00 per applicant.
    Employment- 350.00
    Immigration- 750.00
    GOP 9,600 per year.
    Plus Housing
    Plus meals
    Plus ticket back to their country
    Plus ticket back to Seychelles if they return.
    Compound this by 14,000.
    How can a country make growth rates that are respectable in this environment?

  4. Impossibl puzzle--how you reduce debt without growth?The main determinator of the appropriate level of debt is currency and expected economic growth.The links between growth debt levels highlights the vulnerabality of any indebted economy.

    Moreveor,while IMF speaks about debt reduction ,each time its comes to our shore it bring a briefcase teem with more aid,thus increasing the same debt it tells us it wants to reduce.You cannot reudce debt by taking more debts:

    Discussion about foreign aid reminds me of James Bovard^s nominal 1986 article "The continuing failure of foreign aid"Bovard argues that success of foreign iad often measud by intensions not results.Stabel currency,real growth ,is needed to reduce debt PP.

    There is good aid and bad iad.The bad aid is the one thatcreates depednedecies like Seychelles under Pp now.Good aid is the one which targeted to create capacities in people so that they can live on their own activities.

    We need to move from aid to production Pp.I havbe never heard any country that develop on aid.I know about country who developemnt on trade and innovation but not on aid.Ot date there is no evidence that aid stimulates growth.

    A reudction in amount of Expats is indsipensable should we have real growth not growth build up by foreign iad and loans.To much more leave our shores --it literaly amounted to that of our National budget that canot continue PP.

    Seychelles has the potential to producce more--For instant,today Pp import Chicken meat,seychelles second cosume emat after fish from the other side of th world BRAZIL.
    Such an important local market ,which is also on high demand due to increase of restauratns,hotels ets should product locally.

    AN outter island could be used to produce high quality BIO.chicken meat that could provide and supply the Nation,but alos having a poultry farm locally would create even new INDUSTREIS--E.g :manure product from Chicken cot(a high quality fretilizer)could be collected by a speical firm than supply farmers or mixed with other bio .amnure like seaweed for households,florists,gardens etc..

    Morevoer,TONS of feather remained could converted in to FILLINGS MATERIAL :for pillow,bed,mattress,etcc.Chicken feather is an expensive produce compare to other fillings.

    Residues such as Chicken legs---could be coverted into aniaml feeds,but cchicken legs are also a delicatessen in any asian countires thus could be imported.

    Furthermore,to produce a high quality bio -product--chîcken could be feed by natural produces such as Ccocnut(copra)pressed into pellet or dried fruits/vegetable turned into powder ed chicken feeds etc...thus make the use of Copra more interesting.etc.etc.etc.etc.etc.. I could also mention the use (as combination) of CLAY BRICK(which is produced by compressing the aly mixed with small amount of lime or cememnt)thus would provide us with a heat resistance matieral(for cooler houses thus reduce use of Aircondition,fans both consmue lots of eleltrcity).Clay/earth bircks is cheaper to produce,we have the rawaterial locally,it would reduce use of gravel,cement,and create new jobs locally.We can even produce Clay roofing title(which also is a high heat resistance(Con:heavier as steel).NB: also the use of Soalr Panel fixed of house roofs would laos help reduce heat in houses.
    Pp this is a solution that would help the use of eletrcity for the use of Airconditions would literally desaspearedand including ceiling fans.etc....

    Jeanne DÂrc

  5. Is there any opposition leader that meet with IMF,UN delegation when there visit Seychelles?I would like to know:(


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