All debts with multilateral bodies cleared |22 November 2006

Although this country's standard of living continues to improve, it is out of earnings and not from debts.

The managing director of Barclays Bank for Africa and the Indian Ocean, Andrew Bainbridge, said this at State House on Friday, when asked to comment on Seychelles current economic status.

He said he has been coming to Seychelles over the last seven years, and he has seen progressively new improvements to the economy.

When announcing the contents of the Appropriation Bill 2007, the principal secretary (PS) for Finance, Lekha Nair, confirmed that Seychelles has indeed cleared all its multi-lateral debts.

This, she said, has improved the country's profile internationally to the extent that financial organisations are already studying areas in which they can fund projects here. Notable among them is the African Development Bank (ADB), which has already dispatched a delegation here.

She said that Seychelles continues to have a budgetary surplus which is important to enable the continued payment of debts, "although we have paid all our multilateral debts which we cleared from our recent issue of bonds.

"In fact we have paid ADB. We don't owe ADB at all and because we don't have any issues with any multilateral bodies now, they are coming to Seychelles now. They are opening their doors and want to talk to us on possible project financing," the PS said.

"We have also cleared our arrears with the International Monetary Fund," she said, adding that ADB has been visiting different ministries, non-governmental organisations and the private sector seeking projects they can finance.

"At the end of their mission this week they will give us a list of areas where they can possibly help," she said, but added, "I think we are more careful.

We don't want to rush just because they have come to us. It would mean more loans which would at the end of the day increase our debts."

"We have to prioritise but we also want to listen to ADB since they have come to carry out their own studies to find out which areas they would like to contribute in, so we will listen to them first," Mrs Nair said.

Talking about the 2007 budget, she said that allocation of extra funding to enable ministries to render better service has been made to help in the purchase of computers and vehicles.

The PS said that the 2007 budget also makes provision for increases for the different ministries’ and departments’ expenditure for equipment to better the services delivered by the organizations.

“Government made major cuts in 2003 especially in minor capital but time has now come with the new government and the new reorganization to review some of those cuts especially in delivering what each ministry is supposed to do.

“There has been lack of basic things like computers, cars or certain equipment which were missing to deliver that additional service that is required,” she said, adding that the 2007 budget is focusing on ensuring that the departments are well equipped to deliver services they are required to give.