Govt revenue holds up despite economic crisis
22.09.2009
The global economic crisis has not caused a drop in government revenue, the principal secretary for finance, Ahmed Afif, has said.
Speaking on Friday during the monthly press conference on Seychelles’ reform programme, he said: “We have not seen any substantial reduction in our receipts besides receipts in trades tax, which have gone down by 24%.
This was effectively the customs tax. However, we have had increases in business tax and we have picked up more on social security.
“Overall we are on target as far as revenue is concerned and we continue to monitor the situation. We have also managed to cut our expenditure, which has helped us to save and to remain on track with the reforms.”
He also said we have not missed out on those debt repayments to multilateral organisations that are not due for rescheduling.
“We have also not taken on any new long-term debts that exceed the programme target,” added Mr Afif.
“There have not been many new loans except the proposed one of €15 million with the African Development Bank, which has not been disbursed yet.
“And we have recently concluded negotiations with the World Bank in Nairobi on a new long-term facility of €6.4 million for 2009. This one has not been signed but will now go to the World Bank for ratification.”
Giving an update on the debt talks, he said following the Paris Club’s 45% face-value reduction, we have had talks with several other creditors, principally the private bond and note holders.
“We’ve had a series of meetings which have helped us to reach an advanced stage of negotiations with the bond holders over a new bond issue, which does not involve any cash except an exchange of the old paper for new paper but with a comparable face-value reduction,” he said.
“The negotiations are advanced and we hope to be able to launch the new offer by the end of September and close it in October, by which time we will know for sure the overall amount of reduction we will get on the private debt.”
Regarding the other non-Paris Club creditors – China, India and Malaysia – Mr Afif said there have been many meetings with them “and we hope to be able to meet some of them at the annual meeting of the World Bank in October in Istanbul”.
He said it is still our target to have our external debt substantially reduced by the end of 2009, which will further help to improve the foreign exchange situation and the fiscal position.
“Everything is going as planned and we do not expect any major hiccups along the way. We have the support of the multilateral organisations, and that will help greatly when dealing with the other creditors,” he said.