Seychelles - Policy based partial credit guarantee (PBPCG) programme

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 Government’s 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 Bank’s 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).