$105 Million has been disbursed to Seychelles from the IMF under the Extended Fund Facility with a primary allotment of $34.26 Million

By Abdul Rahman Bangura–

Photo Credit:
World Guides

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- With-it a press announcement, the International Monetary Fund noted that “the key objective of the proposed program is to support the authorities’ efforts to restore macroeconomic stability and debt sustainability while strengthening the post-COVID-19 recovery.”

Tao Zhang – IMF’s Deputy Managing Director mumbled, “Seychelles’ Economic outlook is positive, but risks remain high. Tourist arrivals since March 2021 point to a strong recovery. Nonetheless, the outlook is uncertain and contingent on the pandemic path, the effective rollout of vaccines in Seychelles’ key tourist markets, and the expected recovery in external demand.”

“The new arrangement under the Extended Fund Facility will support Seychelles’ post pandemic recovery, anchor reform implementation and catalyze additional external financing,” he expanded.

Seychelles, an archipelago in the Western Indian Ocean, was knock badly by the COVID19 catastrophe that effected a downturn in travel that influenced the Tourism Industry.

The IMF asserted that “the authorities reacted swiftly, by locking down the economy, thereby keeping infection and fatality rates low. However, the travel restrictions and global economic downturn triggered an unprecedented economic contraction. The authorities responded with measures to mitigate the economic fallout on businesses
and households.”

The IMF augmented that, as a result, “the public debt ratio increased sharply, reflecting the primary balance deterioration, exchange rate depreciation, and GDP reduction. As soon as vaccines became available, Seychelles steered the world in vaccination range and reopened its borders. With tourist entrances ricocheting heretofore, a V-shaped comeback is now expected.”

According to the Ministry of Finance, some of the measures to be taken under the economic reform include improving Seychelles’ debt sustainability, the business environment, and reform of public administration. The IMF noted that, the key policy concentrates on retaining the recovery pace in curtailing the hazards to debt
sustainability.

“Advancing the reform agenda through an ambitious fiscal adjustment, reinforced debt management and strengthened fiscal governance frameworks, and financial sector development and inclusion are essential priorities to sustain the post-COVID-19 recovery and generate high, sustainable, and inclusive growth,” said the IMF.

Nonetheless, previously Seychelles embarked on economic reform was in 2008. The macroeconomic reform programme with the contribution of the IMF was to mainly handle the severe equilibrium of expenditures and external debt problems.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports,  Africa Correspondent