20 Apr 2004

Future of Solomons Development Bank in doubt

9:11 am on 20 April 2004

The future of the Development Bank in Solomon Islands is in doubt.

The debt-stricken bank is involved in a High Court battle with the Central Bank, which wants to take over its administration.

The bank is resisting moves by the Central Bank which has taken the matter to the High Court.

The High Court is expected to give out its ruling this week but a reliable Development Bank source says the bank does not favour the Central Bank's intention, saying it wants to have a fresh start.

The Development Bank was one of the government institutions hardest hit by the recent ethnic tension, with its borrowers being unable to repay their loans.