EYEWITNESS NEWS

Seychelles Central Bank Governor Takes To Reuters

Seychelles Central Bank Governor Mr. Pierre Laporte recently took to Reuters to give an interview on the economic situation in Seychelles. Usually, he calls in the SBC Big Brother staff and gives the interviews locally.
Pierre Laporte said, “Reforms are on track, the fiscal situation is good, the budget remains tight, Inflation is lower than planned and fiscal revenues remain buoyant ...and expects 4% GDP”.
Mr. Laporte told Reuters that it is his target to keep Inflation under 3%.
“We now have a rupee that is stronger relative to the euro, so on the earnings side, people are getting fewer rupees for their euros”.

What Mr. Laporte Did Not Tell The Reuters Lady
Mr. Laporte did not tell the Reuters lady that the domestic economy is stagnant and shrinking in real terms. Fishing Industry revenues are down by -50% and Tourism Revenues last year were down -22% and like -15% this year, though arrivals are 14% higher then last year. Much of the 14% includes 2000 non GOP workers that enter the country as “visitors”, for Sheik Khalifa’s construction works.
Mr. Laporte failed to mention to Reuters that the commercial banks hold over SCR. 3.7 Billion in loans, some performing and some not performing and SCR. 1.8 Billion in limbo accounts.
Commercial banks say they cannot release this money into the market to stimulate the economy for want of viable clients. Interest rates remain high because the cost of business in Seychelles is high, because it is also very unpredictable and still central economy oriented. Government is also too slow to approve projects, taxation still unpredictable.
If this money was released into the economy as President James Michel requests, the value of the rupee would plunge over night as you would have much more rupees competing for a limited amount of hard currency.
Mr. Laporte says the rupee has gained strength against the euro. He is right. By as much as 50%. But only in Seychelles, still.
This makes rupee expenditures for earners more costly by 50%. In effect, water, electricity, salaries, wages, go up 50%. Increase in price is “Inflation” Mr. Laporte, but the increase price in your Inflation model is not reflected on a price tag, it is built into the rate of exchange scheme you have imposed on us to meet SPPF/PP political objectives. You did not highlight this little detail to Reuters.
Basically, Mr. Laporte is playing the SPPF/PP tune to the key. He is suppressing the value of the rupee to make the earners of wealth in the domestic economy soak up all Inflationary side effects of his reform and monetary policy. Hence he is minimizing the impact of the reforms on the majority of ordinary Seychellois in the short term to meet short term objectives: the next election.
Unfortunately, this political posturing hurts everyone longer, in the end and the ordinary Seychellois will pay the heaviest for the bad policy.
Mr. Laporte’s political agenda will stifle growth and stifles demand, hence weakening the balance sheets of the euro earners, who Michel needs to borrow Scr. 1.8 Billion from commercial banks to get the economy moving. The ordinary Seychellois who relies on business to get moving himself, will end up with the shortest end of the stick.
No job, no future... no future, no life under SPPF/PP. No life under SPPF/PP, better off dead, then to live under this system of failure.
What Mr. Laporte is doing is a little like putting sugar into an engine, and expecting it to run well. It will not run well, it will be destroyed in no time.

What Laporte and SPPF/PP Use To Replace the Broken Economic Engine and projected 4% GDP
Mr. Laporte was silent to Reuters on what is propelling the projected 4% GDP in Seychelles economy, if Fishing revenues are down, and Tourism revenues are down. It is of course, the Sheik Khalifa Economic Pillar under the “Sell Baby Sell” JJ Spirit economic program.
By remaining silent, Laporte is encouraging all Tourism player, all Fishermen, to go get a No.4 license and start trucking Sheik Khalifa’s water tanks and pipes from the Antonov to La Misere.
We need a serious monetary program that ensures growth in our economy without selling our country Mr. Laporte.

Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois!