## Seychelles: 2008 Article IV Consultation and Request for a Stand-By Arrangement: Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Seychelles

_IMF Staff Country Reports, December 2, 2008_

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**Canonical URL:** [Seychelles: 2008 Article IV Consultation and Request for a Stand-By Arrangement: Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Seychelles](https://www.imf.org/en/publications/cr/issues/2016/12/31/seychelles-2008-article-iv-consultation-and-request-for-a-stand-by-arrangement-staff-report-22521)

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## Bibliographic details
- Authors: Arrangement. Large
- Published: December 2, 2008
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451836226.002

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### Key findings: macroeconomic conditions and vulnerabilities
- Large macroeconomic imbalances and vulnerabilities resulted from longstanding unsustainable macroeconomic policies.
- Recent external shocks, combined with those policy weaknesses, culminated in mid-2008 with:
  - the near-exhaustion of foreign reserves, and
  - missed payments on public debt obligations.
- Growth is declining.
- Inflation has risen sharply.
- The pegged exchange rate was incompatible with fundamentals.
- A complex system of exchange restrictions and controls resulted in:
  - economic dislocation,
  - a parallel exchange market, and
  - pervasive dollarization.
- The authorities requested a Stand-By Arrangement.

### Analytical emphasis and subject scope
- Primary subjects identified: Arrears, Banking, Debt service, Exchange rates, External debt, Foreign exchange, Public debt.
- Geographic and thematic keywords include: Africa; East Africa; Eastern Europe; Middle East; Global; government; authorities' reform program; reform effort; reform program; upfront liberalization; exchange regime; exchange rates; authority; CBS governor; CR; ISCR.

### Policy implications and priorities (as reflected in the paper)
- Address longstanding unsustainable macroeconomic policies that generated large imbalances.
- Restore external viability by rebuilding foreign reserves and resolving missed public debt payments.
- Realign exchange rate policy with fundamentals to eliminate economic dislocation and the parallel exchange market.
- Reform complex exchange restrictions and controls to reduce pervasive dollarization.
- Engage with the IMF through a Stand-By Arrangement to support adjustment and reform efforts.

### Publication and document identifiers
- Publication date: December 2, 2008
- Pages: 102
- Volume: 2008
- Issue: 365
- Series: Country Report No. 2008/365
- DOI: https://doi.org/10.5089/9781451836226.002
- Stock No: 1SYCEA2008001
- ISBN: 9781451836226
- ISSN: 1934-7685

*International Monetary Fund. "Seychelles: 2008 Article IV Consultation and Request for a Stand-By Arrangement: Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Seychelles", IMF Staff Country Reports 2008, 365 (2008).*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/seychelles-2008-article-iv-consultation-and-request-for-a-stand-by-arrangement-staff-report-22521_