Washington — The World Bank Board of Directors today approved funds to support Seychelles' substantial efforts to modernize its business climate, improve the transparency and sustainability of government expenditures, and better target the people who need social services.
"After experiencing a financial crisis in 2008, the Seychelles Government has strongly and successfully pursued economic reforms," says Haleh Z. Bridi, the World Bank Country Director for Seychelles.
"We are pleased to support today's project which will continue the Government's upward trend in fiscal management and oversight of public enterprises and improving the M&E framework in the social protection system"
The new US$ 7 million IBRD loan will support Seychelles' Second Sustainability and Competitiveness Development Policy Loan, the second in a series of three loans to help the Government implement reforms that will contribute to improve the business climate in Seychelles; enhance fiscal transparency; enhance public financial management; improve the distribution of social assistance and its monitoring; and increase fiscal oversight and management of public enterprises.
"Seychelles' has already achieved most of the Millennium Development Goals, especially for education, health, poverty eradication, and the environment," said Marcelo Giugale, the World Bank's Director of Economic Policy and Poverty Reduction Programs for Africa. "Today's financing will assist the Government to further consolidate its macroeconomic framework and improve public sector efficiency through tighter monitoring of government spending and transfers, and implement a program based budgeting system".
The operation supports steps to make it easier to start a new business by modernizing the country's 1972 Companies Act, help implement a new Insolvency Law, just introduced by the National Assembly, and help improve transparency and governance in the petroleum and fisheries sectors, assist in strengthening financial management of public institutions.
"Today's project boosts the Government's efforts to ensure efficient allocation of public resources and better targeting the poor for the public housing subsidy and other public services. said Sawkut Rojid, the World Bank Task Team Leader. "I'm pleased to support the Government's implementation of this project."