8 Feb 2007

Solomon Islands govt to resurrect its collapsed development bank

8:58 am on 8 February 2007

The Solomon Islands government is to resurrect the country's collapsed development bank and intends making it a private commercial operation.

The finance minister, Gordon Darcy Lilo, says the Solomon Islands Development Bank has had a long history of failing to provide sustainable credit facilities for people in rural areas.

He says as the country endeavours to bring more development the government has revisited the concept of such a bank and whether it should remain under their control or go out to the private sector.

"It is now becoming apparent that it has to be given out to the private sector with a clear mandate that is to provide rural financing to the rural people but also at the same time to make sure that there is no government control or political interference with the way that it should be run and that it should be run commercially."