India is to write off 45% of Seychelles’ debt and reschedule the rest over a 20-year period with the interest rate halved, its Prime Minister Manmohan Singh has said.

 

 

As part of its support for our economic reforms, the Indian government is also writing off US $1.375 million owed on a commercial loan with the Exim Bank (Export Import), Dr Singh said after talks with President James Michel in New Delhi.
This agreement is in line with the “Paris Club formula”, whereby large lenders have been looking at rescheduling Seychelles’ debts.

Mr Michel, on a state visit to India, expressed Seychelles’ appreciation for this significant gesture of economic aid during the current economic reform programme, where the management of debt has been a key target.

“We are deeply grateful for India’s proposals and readiness to assist Seychelles during this crucial period, and we thank the government and the people of India for supporting our development and economic stability,” he said.

During the talks, Dr Singh complimented Mr Michel for protecting Seychelles’ economy from the global economic crisis and for the ongoing reform process.

He confirmed that the Indian government will give the Development Bank of Seychelles a US $10 million line of credit at concessionary terms, which was under discussion during the 7th Indo-Seychelles Commission meeting in Seychelles last month.
Dr Singh also encouraged the commission to hold more regular meetings.

President Michel and Prime Minister Singh also discussed opportunities to expand commerce and trade, as well as tourism, between the two countries.

Following the talks, Seychelles and India signed a bilateral investment protection and promotion agreement, which is expected to further boost trade and investment.