VICTORIA, Mar 19, 2026 — The International Monetary Fund has agreed with Seychelles’ authorities on the final policy steps under the country’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), unlocking a disbursement of up to SDR 32.9 million (about $45 million).
This would bring total IMF funding since May 2023 to SDR 76.7 million (about $105.1 million), pending Executive Board approval in May 2026.
Seychelles’ economy grew an estimated 5.1 percent in 2025, driven by record tourist arrivals. Inflation remained below zero, while the government posted a primary fiscal surplus of 2.5 percent of GDP. Public and publicly guaranteed debt declined to 53.6 percent of GDP, and higher tourism revenue narrowed the external current account deficit to 6.5 percent of GDP. Central bank foreign exchange reserves now cover slightly more than four months of imports.
Most performance targets under the EFF were met, though two structural reforms remain pending. The Central Bank of Seychelles has postponed a retail-oriented window for government securities, awaiting the completion of a Real Time Gross Settlement System and a Central Securities Depository.
Pilot reviews of the ministries of finance, education, and health are expected to conclude by end-2026 with World Bank support, informing a broader public sector assessment. Climate-related reforms under the RSF have progressed, with remaining measures, such as a climate risk exposure assessment and cost-reflective electricity tariffs, awaiting Cabinet approval.
Looking ahead, the IMF warned of slower growth in 2026, projecting GDP expansion of 1.5 percent amid potential disruptions to air travel and tourist spending. Rising global oil and food prices could push inflation to 2.6 percent, widen the external current account deficit to 7.8 percent of GDP, and reduce reserves.
Authorities are urged to target contingency measures on both spending and revenue, protect vulnerable populations, and maintain exchange rate flexibility while continuing reforms to support diversification and climate resilience.
