Via IMF (Den Internationale Valutafond)

IMF Staff Issues an Interim Performance Update to the Board on Seychelles’ Policy Coordination Instrument (PCI)

August 19, 2020

Washington, DC: The COVID-19 pandemic has had an unprecedented economic impact on
Seychelles through the implementation of strict domestic measures to
contain the spread of the virus and the related global spillovers. The
authorities have responded with measures to mitigate the economic fallout
on businesses and households. To help address the urgent balance of
payments need arising from the pandemic, the Executive Board approved on
May 8, 2020 the authorities’ request for emergency financing under the
Rapid Financing Instrument (RFI) of SDR 22.9 million, equivalent to 100
percent of quota

(IMF Country Report No. 20/170)


All end-December 2019 quantitative targets for the 5th review were met,
including the inflation rate and the floors on the primary fiscal surplus
and net international reserves.
The heavy toll of the pandemic has pushed the fiscal targets for
end-June 2020 out-of-reach but progress in other areas continues to be
The reform target on the legal framework for a risk-based approach to
Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT)
supervision was met in March 2020 and the one on the legal framew ork to strengthen entity transparency was partially
implemented in April. Other review targets were delayed.
The government is currently discussing the different financing options
in regards to the large liabilities of Air Seychelles with the other
shareholder with a view to minimizing fiscal risks.
Looking ahead, the authorities would need to identify fiscal saving
measures to shore up medium-term fiscal consolidation in view of the
substantial risks to debt sustainability.


Staff has sent to the Executive Board a performance update
concerning the 5th Review under the Seychelles PCI-supported
program. A performance update is issued to the Board when a review
cannot be completed within 3 months from the scheduled date. It
provides an overview of the economic situation and program
performance, indicating the sources of delay in completing the
scheduled review, and highlighting the corrective actions needed in
order to bring the program back on track.

IMF Communications Department

PRESS OFFICER: Lucie Mboto Fouda

Phone: +1 202 623-7100Email:


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