Seychelles Announces Completion of the IMF's First Review Under the EFF

VICTORIA, Seychelles, July 8, 2010 - The Government of the Republic of Seychelles announced that on 30 June
2010, the Executive Board of the IMF completed the first review of
Seychelles's economic performance under the 3-year Extended Fund Facility
(EFF). The Board's decision (taken on a time-lapse basis(1)) triggers the
disbursement of SDR2.2 million (approximately US$3.3 million), bringing the
total amount disbursed since the EFF's approval on 23 December 2009 to
SDR5.28 million (approximately US$7.8 million).

The IMF simultaneously confirmed that the programme remains fully
on-track, and that all quantitative criteria for end-March 2010 were met. The
Fund added that economic policies continue to be anchored in a prudent fiscal
stance, and that good progress is being made on structural reforms. The Fund
also stated that the country has proven remarkably resilient to the double
crisis that it has experienced over the last two years, and that it now
appears to be emerging from recession.

The IMF's press release on the EFF review approval can be found at:
www.imf.org/external/np/sec/pr/2010/pr10269.htm

This successful review is relevant for the purposes of the step-up coupon
notes due 2026 issued by Seychelles following the successful completion of
its external debt exchange offer on 11 February 2010 (the "Notes"). Under the
terms of the Notes a principal reinstatement could be activated if the IMF
had not issued a press release announcing the Executive Board's approval of
the successful first review under the EFF by 31 December 2010. As that review
has successfully occurred and the relevant press release has now been issued
by the IMF, the principal reinstatement feature under the Notes will not be
activated.

The relevant notifications contemplated under the terms of the Notes will
be dispatched shortly.

An economic and financial update was published by Seychelles in late
June, and can be found at the State House website using the following link:
www.statehouse.gov.sc/index.php?option=com_filecabinet&view=files&id=6&Itemid=74

(1) The IMF's Executive Board takes decisions under its lapse of time
procedure when it has been previously agreed by the Board that a proposal can
be considered without convening formal discussions.

Jill Laporte, +248-382-109 / 722-740, jill.laporte at gov.sc