IMF Staff Concludes Post-Financing Assessment Mission to Seychelles
IMF News, September 29, 2026
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Bibliographic details
- Published: September 29, 2026
Mission overview
- An IMF staff team led by Todd Schneider visited Victoria from September 21-30 to conduct Seychelles’ Post-Financing Assessment (PFA).
- Press Release No. 26/310 dated September 29, 2026 conveys the IMF staff’s preliminary findings.
- Seychelles’ 2026 PFA is expected to be discussed at the IMF Executive Board in December 2026.
Short-run growth and tourism impact
- The war in the Middle East has negatively affected tourist arrivals and growth in the short run.
- Tourist arrivals were reduced particularly during March-June; subsequent months show a nascent recovery.
- Real GDP growth projection for 2026: 1 percent.
- Real GDP growth in 2025: 5.8 percent.
Inflation, subsidies, and state-owned enterprises (SOEs)
- Headline inflation remained moderate at 0.9 percent through August.
- Moderation in inflation reflects a subsidy through state owned enterprises (SOEs) to limit pass-through of rising international commodity prices to domestic markets.
- The cost of these subsidies has:
- Deteriorated some SOE balance sheets.
- Reduced dividend payments to the government budget.
External sector and reserves
- The external sector has remained broadly stable despite the recent shock.
- The rupee has been broadly stable vis-à-vis the U.S. dollar.
- Central bank foreign exchange reserves remain at about 4 months of import cover.
Financial sector resilience
- Stress on the financial sector appears to have been limited.
Institutional note on the PFA
- A Post-Financing Assessment (PFA) is expected for countries with outstanding IMF credit above the absolute or quota-based thresholds that do not have an IMF-supported program or a staff-monitored program.
- The PFA reports on:
- The members’ policies.
- The consistency of the macroeconomic framework with the objective of medium-term viability.
- The implications for the member’s capacity to repay the Fund.