Seychelles’ economic reforms are a model for other developing countries, says IMF chief

Seychelles has exceeded expectations in its macro-economic reforms and is an example for other developing countries, an executive director of the International Monetary Fund (IMF) said on Tuesday.

Chang Huh, executive director of the IMF board representing a group of 16 countries, including Seychelles, made the statement to reporters after meeting Seychelles President Wavel Ramkalawan at State House.

Huh is in Seychelles as part of the organization’s second review of the Expanded Financing Mechanism (EFF) arrangement and he praised the island nation for the way it has set a good example on how to handle uncertainty external.

“Many countries have problems communicating with the IMF team and also to implement the program, but for Seychelles we have seen that there are no problems and we remain very happy to continue to work with the country,” he said.

Huh said that during his discussions with Ramkalawan, he urged the president to stay in close contact with other international institutions to help build Seychelles’ international credibility.

“Seychelles is a small country and for other nations to have confidence in the Seychelles economy, it is important that good relations are established with institutions such as the IMF and the World Bank,” he said. added.

The IMF executive director said he was personally very proud of Seychelles’ commitment to the program and very pleased with the progress the country has made.

On July 21, the IMF Executive Board approved financial support for the Seychelles government’s economic reform program. The support is for a 32-month extended agreement under the EFF for $107 million.

Following the completion of the second program last week, the IMF team said Seychelles’ macroeconomic outlook is favorable despite uncertainties over the effects of the Russian-Ukrainian conflict.

“I have heard the vision of the President and his willingness to prepare for any kind of external challenges by working with the international community and so I am very confident that Seychelles will be able to meet these challenges,” Huh added.

Seychelles, an archipelago in the western Indian Ocean, has sought IMF support after its economy was badly hit by a drop in travel caused by the COVID-19 pandemic. The pandemic has affected the island nation’s tourism industry, which is the main contributor to its economy.

The last time the island nation embarked on economic reform was in 2008. The macroeconomic reform program with the help of the IMF was introduced mainly to address its serious balance of payments problems and external debt difficulties. .