Seychelles: 2010 Article IV Consultation and Second Review Under the Extended Arrangement, Request for Rephasing of Disbursements, and Financing Assurances Review-Staff Report; Staff Supplement; Public Information Notice and Press Release on the Executive (Electronic book text)

1. Two years of stabilization efforts and international assistance have moved Seychelles away from the 2008 balance of payments and debt crises that threatened the country's high living standards. This was achieved through a remarkable turnaround of economic policies, including foreign exchange market liberalization and floating of the rupee, exceptional fiscal adjustment, and enhanced management of public finances and central bank. The stabilization achievements were all the more remarkable since Seychelles had to confront at the same time a global crisis that lowered tourism receipts, but fortunately spared its financial system.