Seychelles Policy Partial Tender

Summary Signature Date 11 Feb 2010Planned Completion Date 31 Dec 2030Last Disbursement Planned Date 31 Dec 2030Sovereign Non-Sovereign SovereignSector Multi-SectorDAC Sector Code 11330Environmental Category 3Commitment U.A 7123826.35Status Approved Project General Description The Policy Based Partial Credit Guarantee PBPCG programme aims to support the Government of Seychelles to maintain its momentum in implementing the reform agenda as defined in the Governments Letter of Development Policy. The PBPCG programme is based on the Operations Policy Matrix which was agreed between the GoS and the Bank during the appraisal mission in November 2009. Indeed Seychelles has made commendable efforts to reform its economy in recent years. The critical issue the country faces today is a considerable commercial debt burden. The Bank can be instrumental in assisting the country through a partial credit guarantee to successfully negotiate a restructuring of that debt. In addition this programme will support certain frontloaded reforms to enhance financial governance and debt management. The programme objectives will be achieved by supporting current reforms. Indeed the Banks proposed support in the targeted areas of debt management and financial governance will complement and strengthen coordinated actions that are already being carried out by the Bank under its budget support operation the IMF under the SBA and the World Bank under its forthcoming budget support operation.Project Objectives The programmes overarching goal is to support the Governments efforts to promote macroeconomic stability and sustainable growth by reducing public debt to more sustainable levels. The programmes specific objectives are to facilitate commercial debt restructuring whilst reinforcing financial governance. This will help release resources to enable the GoS to pursue its development goals as outlined in Seychelles Strategy 2017.Beneficiaries The primary beneficiaries are the Seychellois people. The guarantee will directly enhance the chances of commercial creditors participating in debt restructuring and therefore help reduce the public debt burden. This would in turn release resources to allow the GoS to pursue its development goals.Funding African Development BankImplementing Ministry of Finance