- The third review of Seychelles’ economic performance that was completed by the Executive Board of the International Monetary Fund (IMF) has allowed the country to draw about $8.6 million under the 32-month Extended Fund Facility (EFF).
Seychelles and the IMF had agreed to a 32-month economic reform programme under the Extended Fund Facility in July 2021. The third review of Seychelles’ economic performance that was completed by the Executive Board of the International Monetary Fund (IMF) has allowed the country to draw about $8.6 million under the 32-month Extended Fund Facility (EFF). The agreement for a 32-month extended arrangement under the EFF is for a total sum of $105.63 million.
Seychelles’ finance minister, Naadir Hassan, said that the endorsement by IMF indicated that the government was in the right course of action. The IMF report said that Seychelles’ economic recovery has remained very strong in 2022, fuelled by the rebound of the tourism sector. The growth of the tourism sector is expected to strengthen with higher inflows from Europe and the Middle East. The recovery of the economy it pointed out, was supported by significant fiscal consolidation and social support for the most vulnerable.
Nevertheless, IMF cautioned that, although the current economic outlook was positive, risks, including a slowdown in key tourist markets, high food and fuel prices and their effect on the most vulnerable, a resurgence of COVID-19, higher-than-expected inflation, and higher non-performing loans from legacy forborne loans etc cannot be ruled out. To avoid Hassan underlined the need to strike the right balance between spending and revenue collection.
Also read;
https://trendsnafrica.com/seychelles-economy-bouncing-back-imf/
https://trendsnafrica.com/seychelles-signs-agreement-with-isa-for-increasing-solar-energy-footprint/
The IMF has so far carried out three reviews under the EFF programme, in which Seychelles has met all quantitative performance criteria and indicative targets .
