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- The African Development Bank (AfDB) has approved a $20 million loan to support the Seychelles’ government budget. The loan is payable over a period of 17 years, with an eight-year grace period.
- The loan is a part of economic reform Seychelles is undertaking with the support of the International Monetary Fund (IMF)
- The Seychelles’ annual budget is currently running at a deficit, which means the country’s expenses are more than its revenue
The African Development Bank (AfDB) has approved a $20 million loan to support the Seychelles’ government budget. The loan is payable over a period of 17 years, with an eight-year grace period. I The loan is a part of economic reform Seychelles is undertaking with the support of the International Monetary Fund (IMF). The Seychelles’ annual budget is currently running at a deficit, which means the country’s expenses are more than its revenue.
This loan will go towards meeting the expenses envisaged under the national budget. The 2021 budget approved in April by the National Assembly is for a sum of SCR 11 billion ($519 million). The budget is giving more importance to the fisheries sector and re-launching the tourism industry.
The support from the African Development Bank is expected to be repeated each of the next three years,. However, the country may not go for such loan if the economic situation improves. The loan has been approved recently. Disbursement will take place once an agreement has been signed. The support programme has the aim of enforcing economic governance and Seychelles had to fulfill a number of actions in order for the loan to be approved.
