15 Jul 2004

The Solomons Government restructures debt, saves millions

7:40 pm on 15 July 2004

The Solomon Islands Government has today signed deals to restructure its domestic bonds, saving the country millions of dollars.

The Department of Finance, which has largely been managed by personnel from the Regional Assistance Mission over the past year, says 30 million US dollars of debt has been restructured on much more favourable terms.

It says, as a result, the main holders of the bonds, the Solomon Islands National Bank, and the Solomon Islands National Provident Fund, as well as the Government, will be in more sound financial positions.

The restructure cut interest rates from as high as nine percent to as low as two and a half percent and spreads the loans over a longer period.

It will save the country more than a million US dollars in interest payments annually for the next 14 years.