$17.8 million for Seychelles if new programmes get IMF approval

Marshall Mills speaking at a joint news conference with Seychelles Finance Minister Pierre Laporte and Seychelles Central Bank Governor, Caroline Abel (Louis Toussaint, Seychelles Nation)

(Seychelles News Agency) - Seychelles will be able to access fresh funds amounting to $ 17. 8 million should the International Monetary Fund approve an extension of the Indian Ocean archipelago’s economic reform programme, announced the IMF mission chief for Seychelles Marshall Mills, at a news conference at the Seychelles Ministry of Finance this afternoon.

The Executive Board of the IMF will consider the proposals by the end of June 2014.

Mills and his delegation have spent 12 days in Seychelles talking to government officials as well as representatives of the private sector and civil society. 

“Proposals for the international financial institution to support a new generation of reforms for the Seychelles will consist of maintenance of low inflation, good governance and accountability, elimination of red tape, improved fiscal discipline, development of the financial sector as well as development of the private sector, including increased competition in key sectors such as fisheries," said Mills.

When addressing Seychelles’ first economic reform programme, the IMF Mission chief for Seychelles said the country has largely achieved the objectives of the IMF-supported programme completed in December 2013.

“The program, which aimed at placing Seychelles firmly on the path to fiscal sustainability through reducing debt, rebuilding reserves and implementing financial reforms, has continued to improve macroeconomic performance. This has been measured by an accelerated economic growth of 3.5 percent in 2013, rebuild of external reserves in the Central bank and an inflation drop of 3.4 percent” said Mills.

"Seychelles remain on the right track to meet the objective of reducing public debt to below 50 percent of GDP by 2018. Despite an uncertain global economic environment, he expects the country’s economy to continue to strengthen this year with a projected growth of 3.7 percent.”

Added to reserve accumulation and a more healthy debt situation, those also include food and energy security, a disciplined and transparent public sector, respect of their core mandates by parastatals and the creation of Public Private Partnerships or PPPs.The IMF mission chief has warned however that the rebuilding of foreign exchange reserves and the reduction of public debt, remain the two most important vulnerabilities of the Seychelles economy advising the government to put measures or buffers into place to prevent external shocks.

“PPPs can be very efficient in meeting investment needs,” said Mills.