Seychelles: 2010 Article IV Consultation and Second Review Under the Extended Arrangement, Request for Rephasing of Disbursements, and Financing Assurances Review-Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Seychelles
IMF Staff Country Reports, January 4, 2011
Source details
- Canonical URL
- Seychelles: 2010 Article IV Consultation and Second Review Under the Extended Arrangement, Request for Rephasing of Disbursements, and Financing Assurances Review-Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for Seychelles
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Bibliographic details
- Published: January 4, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455213610.002
Summary
- Seychelles's strong stabilization efforts helped the economy to overcome debt crisis and global recession under the Stand-By Arrangement (SBA).
- Authorities need to address monetary policy trade-offs.
- Financial sector challenges persist.
- Executive Directors welcomed Seychelles's structural reform agenda aimed at:
- enhancing public financial and central bank management,
- strengthening competition and risk management,
- reducing the role of the state in the financial system.
- Directors appreciated Seychelles's strong performance and compliance with performance criteria under the economic program, and extended further financing.
Key findings and analysis
- Stabilization and debt resolution:
- The SBA contributed to overcoming the debt crisis and the effects of the global recession.
- Monetary policy:
- Trade-offs in monetary policy need to be addressed by the authorities.
- Financial sector:
- Existing challenges in the financial sector require attention, including competition and risk management.
- Structural reforms:
- Reform agenda targets public financial management, central bank management, competition, risk management, and state involvement in the financial system.
Program performance and IMF decisions
- Executive Directors noted strong performance and compliance with performance criteria under the economic program.
- Further financing under the IMF-supported program was extended.
Policy recommendations and priorities
- Address monetary policy trade-offs to support macroeconomic stability.
- Implement structural reforms to:
- enhance public financial management and central bank management,
- strengthen competition and risk management in the financial sector,
- reduce the role of the state in the financial system.
Subject classification and keywords
- Subject: Banking; Budget planning and preparation; Economic and financial statistics; External debt; Financial crises; Government finance statistics; Monetary base; Public debt; Public financial management (PFM)
- Keywords: Africa; article IV discussion; Budget planning and preparation; CR; debt reduction effort; East Africa; Global; government; Government finance statistics; government of Seychelles; ISCR; SDR; Seychelles economy; Seychellois authorities