Press Release No. 08/267

Press Release: IMF Managing Director Strauss-Kahn Welcomes Seychelles Reform Program, Proposes to Support it with Stand-By Arrangement

October 31, 2008

Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), issued the following statement today on Seychelles:

"Seychelles is in the midst of an acute balance of payments and public debt crisis, which jeopardizes its living standards and economic development. The authorities have requested Fund assistance in support of a comprehensive reform strategy.

"The authorities' reform program is wide-ranging and bold, and I welcome the steps announced earlier today by President Michel and the related legislative changes adopted by Parliament. These include fundamental liberalization of the country's exchange regime that will enable a floating of the rupee, significant and sustained fiscal tightening, and reform of monetary policies to promote liquidity management based on indirect instruments. At the same time, important steps were also taken to strengthen a targeted social safety net. These reforms merit the strong support of the international community.

"I am pleased to propose to the IMF's Executive Board that the Fund support the government's economic reform program under a Stand-By Arrangement."