IMF Concludes Staff Visit to Seychelles

Press Release No. 11/255
June 27, 2011

An International Monetary Fund (IMF) team led by Jean Le Dem visited Victoria during June 20-24, 2011. The team met with Vice President Danny Faure, Governor of the Central Bank of Seychelles Pierre Laporte, Minister of Home Affairs, Environment, Energy and Transport Joel Morgan, Principal Secretary of Finance Ahmed Afif, and other senior government officials as well as representatives of the private sector and diplomatic community.

At the conclusion of the visit, the mission issued the following statement:

“In June, the IMF Executive Board completed the third review under the Extended Arrangement. Discussions for the fourth review are scheduled to take place in early October 2011. The program remains on track, and the mission and the authorities see eye to eye on the challenges ahead.

“Preliminary data for the first quarter of 2011 are favorable. Economic activity continues to be on the rise, supported by a strong tourism sector. Consumer price inflation remains low (about 2 percent year-on-year) as the increase in international prices of food and fuel have not yet passed through to domestic prices. The present fiscal and monetary policy stances continue to be geared toward maintaining macroeconomic stability and reducing public debt.

“We are encouraged by the authorities’ progress in implementing the program of structural reforms, including preparations for the introduction a value-added tax in mid-2012; and steps toward eliminating Air Seychelles’s losses and strengthening competition in the financial sector.

“The mission wishes to thank the authorities for their warm hospitality and the high quality of the technical discussions.”



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