Restoring credit with World Bank
October, 2006

The Seychelles cleared all its overdue payments to the World Bank (the International Bank for Reconstruction and Development, IBRD). Consequently, all World Bank's loans to the Seychelles or the ones guaranteed by the Seychelles have been restored to accrual status.

This has reinstated the country's eligibility for new operations, project preparation facility advances, disbursements under existing loans, Institutional Development Fund and other grants. This is subject to standard lending terms and conditions of the IBRD.

The arrears of the Republic of Seychelles to the International Bank for Reconstruction and Development amounted to approximately USD 770 thousand, around USD 631 thousand of which was overdue principal payments. Clearance of these arrears will increase net income of IBRD by less than USD 1 million in fiscal 2007 because the Seychelles's exposure to the International Bank for Reconstruction and Development is small.