{
  "title": "IMF Executive Board Completes Fourth Review Under the Policy Coordination Instrument for Seychelles",
  "publication": "IMF News, December 18, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/12/18/pr19468-seychelles-imf-executive-board-completes-fourth-review-under-policy-coordination-instrument",
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  "summary": "On December 17, 2019, the Executive Board of the International Monetary Fund (IMF) completed the fourth review under the Policy Coordination Instrument (PCI) for Seychelles.",
  "publishDate": "2019-12-18",
  "sections": [
    {
      "heading": "Review decision and instrument background",
      "content": "- On December 17, 2019, the Executive Board of the International Monetary Fund (IMF) completed the fourth review under the Policy Coordination Instrument (PCI) for Seychelles.\n- The Executive Board’s decision was taken without a meeting.\n- The PCI was approved on December 13, 2017. Seychelles was the first IMF member country to request a PCI. The PCI is a non-financing instrument available to members that do not need Fund financial resources at the time of approval and is designed for countries seeking to demonstrate commitment to a reform agenda or to unlock and coordinate financing from other official creditors or private investors."
    },
    {
      "heading": "Macroeconomic performance and outlook",
      "content": "- The implementation of the Seychelles’ economic program is largely on track.\n- The 2019 economic growth is estimated to reach about 4 percent, reflecting strong output in the tourism and communication sectors.\n- Macroeconomic performance continued to be strong in 2019.\n- Inflation has been on a declining trend since early 2018.\n- The gross international reserves remain at an adequate level.\n- The near-to-medium-term economic outlook continues to be favorable, provided that the authorities maintain their prudent policies under the Policy Coordination Instrument."
    },
    {
      "heading": "Monetary policy and exchange rate",
      "content": "- The Central Bank of Seychelles (CBS) lowered the monetary policy rate at end-September 2019, citing benign inflationary pressures in the coming months.\n- The CBS is committed to a flexible exchange rate, while being vigilant to both upside and downside risks to inflation."
    },
    {
      "heading": "Fiscal policy, public debt, and state-owned enterprises",
      "content": "- The authorities are committed to the primary fiscal surplus target of 2½ percent of GDP through 2022.\n- The government aims to steadily reduce the public debt-to-GDP ratio over the medium term.\n- The government intends to implement permanent measures envisaged in the 2020 budget.\n- The government intends to keep a very tight rein on Air Seychelles’ financial position."
    },
    {
      "heading": "Structural agenda",
      "content": "- The structural agenda focuses on:\n  - strengthening the AML/CFT framework,\n  - buttressing financial stability,\n  - enhancing inclusive growth, including by improving the business climate.\n\nIMF Communications Department, Press Release No. 19/468\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Seychelles and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/About/Factsheets/Sheets/2017/07/25/policy-coordination-instrument\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/12/18/pr19468-seychelles-imf-executive-board-completes-fourth-review-under-policy-coordination-instrument"
    }
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    "Published: December 18, 2019",
    "On December 17, 2019, the Executive Board of the International Monetary Fund (IMF) completed the fourth review under the Policy Coordination Instrument (PCI) for Seychelles.",
    "The Executive Board’s decision was taken without a meeting.",
    "The PCI was approved on December 13, 2017. Seychelles was the first IMF member country to request a PCI. The PCI is a non-financing instrument available to members that do not need Fund financial resources at the time of approval and is designed for countries seeking to demonstrate commitment to a reform agenda or to unlock and coordinate financing from other official creditors or private investors.",
    "The implementation of the Seychelles’ economic program is largely on track.",
    "The 2019 economic growth is estimated to reach about 4 percent, reflecting strong output in the tourism and communication sectors.",
    "Macroeconomic performance continued to be strong in 2019.",
    "Inflation has been on a declining trend since early 2018.",
    "The gross international reserves remain at an adequate level.",
    "The near-to-medium-term economic outlook continues to be favorable, provided that the authorities maintain their prudent policies under the Policy Coordination Instrument.",
    "The Central Bank of Seychelles (CBS) lowered the monetary policy rate at end-September 2019, citing benign inflationary pressures in the coming months.",
    "The CBS is committed to a flexible exchange rate, while being vigilant to both upside and downside risks to inflation.",
    "The authorities are committed to the primary fiscal surplus target of 2½ percent of GDP through 2022.",
    "The government aims to steadily reduce the public debt-to-GDP ratio over the medium term.",
    "The government intends to implement permanent measures envisaged in the 2020 budget.",
    "The government intends to keep a very tight rein on Air Seychelles’ financial position.",
    "The structural agenda focuses on:",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[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/)",
    "[https://www.imf.org/en/About/Factsheets/Sheets/2017/07/25/policy-coordination-instrument](https://www.imf.org/en/About/Factsheets/Sheets/2017/07/25/policy-coordination-instrument)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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