## Press Release: IMF Completes the First Review Under the Extended Fund Facility Arrangement for Seychelles and Approves US$3.3 Million Disbursement

_IMF News, June 30, 2010_

## Source details

**Canonical URL:** [Press Release: IMF Completes the First Review Under the Extended Fund Facility Arrangement for Seychelles and Approves US$3.3 Million Disbursement](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10269)

## Other formats

- [Markdown version](/en/news/articles/2015/09/14/01/49/pr10269/index.md)
- [Structured JSON version](/en/news/articles/2015/09/14/01/49/pr10269/index.json)
- [Bundle manifest](/en/news/articles/2015/09/14/01/49/pr10269/bundle-manifest.json)

## Bibliographic details
- Published: June 30, 2010

---

### Review outcome and disbursement
- The Executive Board completed the first review of Seychelles’ performance under the three-year Extended Fund Facility (EFF).
- Disbursement made: SDR 2.2 million (about US$3.3 million).
- Total disbursements under the arrangement to date: SDR 5.28 million (about US$7.8 million).
- The Board’s decision was taken on a lapse of time basis.
- The EFF for Seychelles became effective on December 23, 2009 in the amount of SDR 19.8 million (about US$29.3 million, or 225 percent of Seychelles’ quota in the Fund).

### Macroeconomic performance and outlook
- Real gross domestic product (GDP) grew by 0.7 percent in 2009.
- Growth is projected to recover to 4 percent in 2010.
- The Seychelles economy has proved remarkably resilient to the double crisis experienced (external debt crisis and global financial crisis in 2008).

### Fiscal policy and public finances
- The program remains fully on track and all quantitative performance criteria at end-March 2010 were met.
- Government revenue is exceeding expectations in 2010, facilitating implementation of key public infrastructure projects.
- Decision to save part of the revenue overperformance is intended to strengthen fiscal and external sustainability.

### Monetary policy and external sector
- Maintenance of prudent policies has given credibility to the currency float introduced in November 2008.
- Inflation has virtually disappeared, allowing a reduction in key policy interest rates.
- International reserves are being rebuilt.

### Structural reforms and tax policy
- Progress on structural reforms is described as good.
- Tax reforms implemented:
  - Business tax was rationalized.
  - A personal income tax was introduced.
- Next challenges identified:
  - Further broaden the tax base.
  - Reduce tax rates.
  - Modernize customs.
  - Introduce a value-added tax in 2012.
- Authorities have strengthened public finance and central bank management.
- Steps are starting to address restructuring of several key public enterprises and financial institutions to reduce risks to the government budget and foster sustained private sector-led growth.

### External debt restructuring
- Restructuring of Seychelles’ external debt is progressing well.
- Strong policy implementation has convinced most external creditors to bring external debt to sustainable levels.
- A debt exchange with private creditors was completed in February 2010.

*Source: Press Release No. 10/269, June 30, 2010 — International Monetary Fund.*

---


## References

- [Seychelles and the IMF](http://www.imf.org/external/country/SYC/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Press Release No. 09/472](https://www.imf.org/external/np/sec/pr/2009/pr09472.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10269_