Seychelles - COVID-19 Crisis Response Budget Support Program

The proposed operation is a loan to the Republic of Seychelles for USD 10 million to finance the COVID-19 emergency response support program. This is a Crisis Response Budget Support (CRBS) that will be applied for 12 months from June 2020 to July 2021. The Seychelles Crisis Response Budget Support operation was appraised from 20 – 27 April 2020 following a request from the Republic of Seychelles dated 8 April 2020. Seychelles faces a dual challenge of addressing short term impact of COVID-19 and setting the course for a higher growth trajectory. The first case of COVID-19 in Seychelles was confirmed on 14th March and by the 6th of April, there were 11 confirmed imported cases. The country has attained universal health coverage (UHC) with the State providing free and universal access to health care for all Seychellois. However, COVID-19 pandemic threatens to reverse these gains and risks the sustainability of Seychelles universal health coverage. Cognizant of this threat, the Government is implementing measures under the COVID-19 National Response Plan, which have been effective in preventing community transmissions. The operation is to support Government actions that will lay the foundation for macroeconomic stability and protect the socioeconomic progress that the country has so far achieved. The program consists of three broad components namely: (i) strengthening the health response for COVID-19; (ii) expanding social protection and protecting livelihoods against COVID-19 impact; and (iii) protecting economic activities and safeguarding jobs against COVID-19 shocks. These three components are interlinked in pursuit of addressing the immediate public health challenge of saving lives, expanding social protection mechanisms as well as cushioning businesses and the economy from downward spiral.