IMF Staff Completes Review Mission to Seychelles

Stocks and Financial Services Press Releases Wednesday March 21, 2018 08:35
IMF--21 Mar--International Monetary Fund
The staff team reached staff level agreement on policies for completion of the review.
Seychelles' growth outlook for 2018 remains positive, supported by the tourism sector.
Downside risks to the outlook largely lie in external factors, which could dampen tourism performance.
An International Monetary Fund (IMF) staff mission led by Amadou Sy visited Victoria during March 7?20, 2018, to conduct discussions on the first review under the Policy Coordination Instrument (PCI). [1]
At the conclusion of the visit, Mr. Sy issued the following statement:

"Macroeconomic performance continued to be strong in 2017. Economic growth is estimated to have exceeded 5.0 percent, reflecting buoyant tourism activity, strong output in the fishery industry, and expanding credit to the private sector. Inflation (year-on-year) has been picking up and reached 3.5 percent at end-2017 reflecting the rising trend in international commodity prices. The program is on track—with reserves and the primary surplus exceeding targets—and the mission reached staff level agreement on policies for completion of the review"

"The growth outlook for 2018 remains positive, supported by the tourism sector. While a strengthening in international commodity prices could have some negative impacts on the balance of payments and inflation, the country's international reserves coverage is expected to remain at the adequate level discussed in the previous Article IV mission, anchored by the authorities' prudent policies. Downside risks to the outlook largely lie in external factors which could dampen tourism performance."

"The mission concurred with the authorities on the need to make progress in enhancing medium-term growth prospects, including building up infrastructure and resilience to climate change. However, this should be done in a prudent manner that allows fiscal and monetary policies to continue anchoring Seychelles' hard-won economic stability and strengthening fiscal sustainability. In this context, the mission recommended that the large infrastructure projects announced in the State of the Nation Address in March be implemented within the envelope of the authorities' goal to reduce the public debt to GDP ratio below 50 percent by 2021."

"The mission supports a tightening of monetary policy by the Central Bank of Seychelles given the increased demand-pull inflationary pressures and the potential second-round effects of administrative measures. The mission encourages the authorities to continue efforts to strengthen the AML/CFT framework and formulate a new strategy for the international financial services sector."

"The mission met with His Excellency President Danny Faure, Minister of Finance, Trade, and Economic Planning Peter Larose, and Governor of the CBS Caroline Abel, as well as other members of the government, members of the National Assembly, and representatives of the private sector."

"Subject to the approval of IMF management, the IMF Executive Board is expected to discuss the completion of the review in May 2018. The mission appreciates the high quality of the discussions and thanks the authorities for their hospitality, as well as the open and constructive dialogue."

[1] The PCI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PCI helps countries design effective economic programs that, once approved by the IMF's Executive Board, signal to donors, multilateral development banks, and markets the Fund's endorsement of a member's policies (seehttps://www.imf.org/en/About/Factsheets/Sheets/2017/07/25/policy-coordination-instrument).


Latest Press Release

Photo Release: KTC joins EVEANDBOY to celebrate 2019 beauty up to 17% cash back.

"KTC" or Krungthai Card Public Company Limited, by Mr. Sorachach Srilamul, Senior Manager - Credit Card Business, in association with EVEANDBOY, Miss Pluemmanas Panrit, Manager, give special privilege of up to 17% cash back to KTC cardmembers who shop...

Photo Release: Bangkok Bank prepares #Ang Pao envelopes carry the Chinese character #Fu representing #happiness and #luck

Ahead of Chinese New Year, Bangkok Bank has prepared red 'Ang Pao' envelopes depicting auspicious magpies representing good fortune. The envelopes also carry the Chinese character 'Fu' representing 'happiness' and 'luck,' as well as four Chinese words,...

Bangkok Bank reports 2018 net profit of Baht 35,330 million

Thailand's economic growth in 2018 is expected to be 4.1 percent, up from 3.9 percent in 2017. While exports weakened in the second half of the year amid slower world trade and risks from the US trade policies, domestic demand continued to firm up....

TBANK posts fourth consecutive year of earnings growth

Thanachart Bank Public Company Limited generated record earnings of 14,703 million baht in 2018, a 6.5% improvement from last year. Mr. Praphan Anupongongarch, CEO and President of Thanachart Bank Public Company Limited, outlined that "TBank benefited...

TMB unveils TMB Experience

TMB unveils "TMB Experience", new concept branch, offering engaging branch experience that combines digitization with human touch to enable customers to enjoy discovering their real financial needs through 'Avatar' identity creation and exploring...

Related Topics