Overview
Seychelles has reported 11 positive cases (no deaths) as of May 21, 2020. The government has adopted containment measures, including social distancing, travel bans on visitors from high-risk regions, screening at ports of entry, and school closures. Given that about 30 percent of the GDP directly or indirectly relates to tourism sector, the disruption to global tourism can have an adverse impact on the economy. Inflation is expected to increase only moderately as lower oil prices are expected to offset the impact of a depreciating rupee and supply side disruptions.
Travel Restrictions
1. Seychelles (SEZ) is closed.
- This does not apply to emergency diversions.
- This does not apply to special mission flights that are approved (MEDEVAC).
Source : IATA Timatic
Economic Measures
Reopening of the economy. Mandatory work-from-home was lifted on April 30. On May 4, all schools were reopened.
Key Policy Responses
FISCAL
MONETARY AND MACRO-FINANCIAL
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The Central Bank of Seychelles (CBS) reduced the policy rate by 100 bps to 4 percent on March 23. On the same day, it announced that a credit facility of approximately $36 million will be set up to assist commercial banks with emergency relief measures to assist businesses and individuals struggling with the financial impact of the pandemic. The CBS also announced that commercial banks, the Development Bank of Seychelles (DBS) and the Seychelles Credit Union have agreed to consider a moratorium of six months on the repayment of principal and interest on loans to assist businesses in impacted sectors. The National Assembly has allowed the Central Bank to provide (i) a limited credit to government up to SCR 500 million, preferably through purchase of securities, and subject to central bank Board approval; and (ii) extending the maturity of credit to commercial banks to 3 years. The CBS is also considering easing reserve requirements. The CBS will continue to monitor potential market stress and any emerging risks to the financial sector and the economy.
EXCHANGE RATE AND BALANCE OF PAYMENTS
Source : IMF & WB
Civic Freedom Tracker
no data
