Press release


June 5, 2010

During bilateral talks with President James Michel, the Indian Prime Minister Manmohan Singh announced that India would write off 45% of Seychelles debt owed to the Government of India, and reschedule the remainder over a 20 year period with the interest rates halved, as part of the ‘Paris Club formula’ approach.

The Government of India is also writing off 1.375 million US dollar debt which Seychelles owes on a commercial loan with the Exim Bank (Export Import) of India.

President Michel expressed Seychelles’ appreciation for this significant gesture of economic aid to Seychelles during its economic reform programme, where the management of debt has been a key target.

“We are deeply grateful for India’s proposals and readiness to assist Seychelles during this crucial period, and we thank the government and the people of India for supporting our development and economic stability,” said President Michel.

Prime Minister Singh complimented President Michel for protecting the Seychelles economy from the global economic crisis, and for the ongoing reform process.

Prime Minister Singh also confirmed that the Government of India will give the Development Bank of Seychelles (DBS) a 10 million US dollar line of credit at concessionary terms, which had been under discussion during the 7th Indo-Seychelles Commission, which took place in Seychelles in May this year. Dr Singh also encouraged the Indo-Seychelles Commission to meet more frequently.

President Michel and Prime Minister Singh also discussed the opportunities for expanding commerce and trade between Seychelles and India, as well as tourism between the two countries.

Following the bilateral talks, Seychelles and India signed a Bilateral Investment Protection and Promotion Agreement (BIPPA) which is expected to further boost trade and investment between the two countries.