## Seychelles: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Seychelles

_IMF Staff Country Reports, August 23, 2021_

## Source details

**Canonical URL:** [Seychelles: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Seychelles](https://www.imf.org/en/publications/cr/issues/2021/08/23/seychelles-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-464537)

## Other formats

- [Markdown version](/en/publications/cr/issues/2021/08/23/seychelles-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-464537/index.md)
- [Structured JSON version](/en/publications/cr/issues/2021/08/23/seychelles-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-464537/index.json)
- [Bundle manifest](/en/publications/cr/issues/2021/08/23/seychelles-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-464537/bundle-manifest.json)

## Bibliographic details
- Published: August 23, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513594064.002

---

### Summary
- Seychelles was hit hard by the COVID-19 crisis.
- Authorities reacted swiftly, by locking down the economy, thereby keeping infection and fatality rates low.
- Travel restrictions and the global economic downturn triggered unprecedented economic contraction.
- Authorities implemented measures to mitigate the economic fallout on businesses and households.
- The public debt ratio increased sharply, reflecting the primary balance deterioration, exchange rate depreciation, and GDP contraction.
- As soon as vaccines became available, Seychelles led the world in vaccination coverage and reopened its borders.
- With tourist arrivals bouncing back, a V-shaped recovery is now expected.

### Key findings and context
- COVID-19 shock: unprecedented economic contraction driven by travel restrictions and global downturn.
- Health response: early lockdowns limited infections and fatalities.
- Fiscal impact: sharp increase in the public debt ratio due to primary balance deterioration, exchange rate depreciation, and GDP contraction.
- Recovery drivers: rapid vaccination rollout and reopening of borders supporting tourism-led rebound.

### Macroeconomic outlook
- Recovery characterization: a V-shaped recovery is expected as tourist arrivals bounce back following reopening and high vaccination coverage.

### Fiscal and public debt issues
- Public debt: increased sharply (attributed to primary balance deterioration, exchange rate depreciation, and GDP contraction).
- Fiscal measures: authorities enacted policies to mitigate impacts on businesses and households (specific measures not listed in the summary).

### Subject coverage and keywords
- Subject: Asset and liability management, Debt management, Expenditure, Fiscal policy, Fiscal stance, Government debt management, International organization, Monetary policy, Public debt, Public financial management (PFM)
- Keywords: Debt management, debt sustainability risk, financing option, Fiscal stance, GDP contraction, Global, Government debt management, government institution, liability management operation

---

## Content in this bundle

- **1sycea2021001**
  - [1sycea2021001 (Markdown version)](/-/media/files/publications/cr/2021/english/1sycea2021001.pdf.md){rel="alternate" type="text/markdown"}
  - [1sycea2021001 (PDF)](/-/media/files/publications/cr/2021/english/1sycea2021001.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2021/08/23/seychelles-request-for-an-extended-arrangement-under-the-extended-fund-facility-press-464537_