Mr Faure – who is also Minister for Finance – said this to members of the National Assembly during a symposium organised by the International Monetary Fund (IMF) at Le Méridien Barbarons hotel on Wednesday.

He said the economy grew in 2009 despite the global recession, foreign reserves have grown, the exchange rate has stabilised,  economic activity has normalised and prices, as well as interest on loans, have fallen after reaching peaks in 2009.

“After two years of programme implementation, the results are very apparent,” he said, outlining the following sucesses:
The economy grew by 0.7% in 2009, despite the global recession, and is projected to grow by 4% this year and 5% in 2011.

Reserves remain low by international standards at around two months’ import cover but have recovered from less than US $10 million in late 2008.

The exchange rate has stabilised and tightened to levels inside the black market rate in June 2008, the initial weakening following the float thus contributing to a normalisation of economic activity and an increase in foreign currency deposits.

Prices have stabilised; after reaching a peak in late 2008 due to the exchange rate correction, they fell throughout 2009.

After rising to 30% in December 2008, domestic interest rates have fallen sharply to around 4% on one-year treasury bills.

Seychelles’ public sector debt stock and repayment profile have been transformed as a result of a highly successful debt restructuring programme. Debt as a share of gross domestic product (GDP) has been reduced by half, and financing gaps have been eliminated over the medium term.

Seychelles’ macro-economic performance has been anchored by fiscal discipline. Its 2009 primary surplus of 15% of GDP was the highest in the world among non-oil producers and its 2010 target of 7% of GDP looks set to be exceeded.

Mr Faure said the government’s large fiscal surplus in a difficult economic period is a stark contrast to the deficit run by every other non-HIPC (heavily indebted poor country) now borrowing from the IMF, and our performance has also been anchored by strong programme ownership.

“The government’s borrowing level of 230% of quota is roughly a third of the average of other IMF borrowers,” he said.
“As Finance Minister, I am aware we have more to achieve as we continue with the second generation of reforms initiated in 2009 to enable our country to further address its fiscal challenges.

“The way forward requires of us a higher degree of fiscal discipline, accompanied by prudent and cautious management of our economy.

“We will also need to continue with the review of our legislation and introduce new laws to keep up with new developments and international norms. I am optimistic that our clear vision and compelling desire to succeed will take us through.”