Economic reforms get boost from EU


14-December-2012

This is EU's fourth and last disbursement through budget support under the Seychelles Economic Reform Programme (SERP) which was agreed for a total of 16.5 million euros for the period 2009-2012.

Alessandro Mariani, ambassador and head of the delegation of the EU for Seychelles, has expressed his appreciation for the performance of Seychelles’ economic reform programme. “The Government of Seychelles has well demonstrated its sustained commitment to its economic reform programme.

The EU recognises progress made by the country in achieving macro-economic stability, implementation of sustainable fiscal policy measures as well as enhancing the country's public financial management," said Mr Mariani.

The 2012 disbursement aims at mitigating the economic and social impact of the global crisis and to promote the economic recovery of Seychelles.

“Seychelles met several key targets and performance indicators in strengthening the public finance regulatory and legal framework and in improving the management of public finances,” noted Mr Mariani.

Budget support is a way of implementing development aid which consists in giving financial aid to the treasuries of the recipient countries. This aid increases the resources available to the recipient country to implement its own budget according to its own procedures.

What generally characterises budget support is that it goes directly to the partner governments and is integrated into their own systems of appropriation, procurement and accounts, and is not connected to specific projects.

All types of budget support (whether general or sectoral) consist in a lump-sum transfer of foreign exchange which is converted into local currency and credited into the treasury account. The aid is given subject to certain conditions of eligibility and implementation.

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