27 Sep 2004

Niue Government happy with its new bank operator

3:47 pm on 27 September 2004

The Niue Government has welcomed the arrival of one of Papua New Guinea's major banks on in Niue.

The Bank of the South Pacific is to open its first offshore branch on Niue on October 1.

BSP is to take over from Westpac which runs the island's only trading bank.

The Premier of Niue, Young Vivian, says Westpac had sold out because upgrading its banking facilities on the island would have been too costly.

Mr Vivian says the government has been assured that BSP is a sound replacement for Westpac.

"It appears to be a bank with a good reputation and experience in the rural type of banking system to cope for island situations, village situations and so on. That is some of the reasons why we are accepting it."

Young Vivian says he also believes BSP was their only choice on offer.