Timely Reforms Aid Seychelles' Economy -- IMF
Wed, 18 January 2012
Sound macroeconomic policies and timely structural reforms helped the Seychelles economy to rebound from the 2008-09 crisis, the International Monetary Fund (IMF) report on the islands' fourth programme review has said.
"Aided by sound macroeconomic policies and timely structural reforms, the Seychelles economy rebounded strongly from the crisis of 2008-09. Medium-term prospects are good, but downside risks exist due to the crisis in Europe. Inflation has picked up recently, reflecting the delayed pass-through of global food and fuel price increases, but remains broadly in check," noted the IMF executive board's deputy managing director and acting chair, Mr Min Zhu. Â
An IMF delegation and Central Bank of Seychelles governor Pierre Laporte and finance principal secretary Ahmed Afif held a joint press conference on 12th January in Victoria.
The report added: "Sustaining debt sustainability is critical for sustaining the gains from macroeconomic stabilization. The restructuring of the loss-making national airline and increases in utility tariffs to cost-recovery levels will help achieve a sounder fiscal position while creating space for needed infrastructure investments. Development of a well-targeted social safety net will be imported to protect vulnerable groups."
The IMF has completed the fourth programme review and financing assurances review. This allows the immediate disbursement of an amount equivalent to 4.8 million dollars (US).