The Vice President of Seychelles, Ahmed Afif, announced on Thursday that the cabinet of ministers has given its approval for the Ministry of Finance to initiate negotiations with the International Monetary Fund (IMF) for a new Extended Fund Facility (EFF). The current EFF programme is about to end, and the new agreement will help Seychelles continue to benefit from the support of the IMF.
Seychelles and the IMF had previously agreed to an economic reform programme under the Extended Fund Facility, worth $105.63 million, due to the severe impact of the COVID-19 pandemic on the country’s economy. Being under such a programme benefits Seychelles in terms of its credibility, as international financing institutions use specific criteria to monitor countries’ fiscal performance, tax collection, debt payments, and more. By being evaluated by an independent body like the IMF, Seychelles can improve its ranking, which can lead to better loan conditions from international banks.
Moreover, the new EFF will focus on climate change and actions to mitigate its effects. Seychelles aims to lower its debt to GDP ratio to 50% by 2026, and having high credibility is vital to ensuring that its creditors have confidence in the country. The World Bank and the African Development Bank will also be providing assistance, and any projects implemented with Seychelles will also address climate change. All ministries must play a relevant role in mitigating the adverse effects of climate change, showing the seriousness and comprehensiveness of Seychelles’ programme. The new EFF is expected to be put in place between October and December this year.
 for a new Extended Fund Facility (EFF).){kind=link}