IMF making regular reviews of programme to monitor reform in Seychelles

Amadou Sy, the IMF mission chief for Seychelles met with President Danny Faure at State House.

(Seychelles News Agency) - An approved three-year Policy Coordination Instrument for Seychelles to help monitor a reform agenda is being brought under review for the first time, a representative of the International Monetary Fund (IMF) said on Monday.

“Under the programme’s agreement, we need to come back to the island nation every six months to review and measure the success of the programme,” said Amadou Sy, after meeting with Danny Faure, the President of Seychelles at State House.

The Policy Coordination Instrument was put before the IMF executive board last September. It is a new non-financing fund instrument that supports countries seeking assistance to develop and help monitor a reform agenda available to all member countries.

“Six months ago we were here and the authorities requested a programme with IMF. It is a non-financing programme. Therefore we are not lending money to Seychelles,” said Sy, the IMF mission chief for Seychelles.

He added that: “We want to provide, advise, recommendations and even technical assistance should the authorities request for it.”

The Instrument will help the island nation build on the lessons from the previous programmes supported by IMF. While the Policy Coordination Instrument involves no use of IMF resources, successful completion of programme reviews would help signal Seychelles’ commitment to continued strong economic policies and structural reforms.

After approving the programme last year, the Deputy Managing Director and Acting Chair of the IMF Executive Board, Tao Zhang, had said that Seychelles' “economic programme supported by the Policy Coordination Instrument aims at locking in economic stability while fostering sustained and inclusive growth."

Zhang said that while the strong ownership of Seychelles’ authorities has played an important role in the success of the Fund-supported programmes, “the country remains vulnerable to external shocks and further efforts are needed to address challenges in maintaining fiscal discipline.”

Seychelles embarked on a macroeconomic reform programme in November 2008 to address external debt difficulties. The island nation requested the assistance of the International Monetary Fund to put the domestic economy on a sustainable path.

This year will be exactly 10 years since Seychelles started its macroeconomic reform programme with the assistance of IMF.