17 Jul 2012

Solomons claims support for debt management strategy

2:17 pm on 17 July 2012

The Solomon Islands government says it has the backing of the Honiara Club, which represents the country's international lenders, for its new debt management strategy.

The Minister of Finance and Treasury, Rick Hou, says at a meeting last week the strategy was unanimously endorsed by the representatives of the Honiara Club.

Under the strategy, all new public sector borrowing proposals will go through the Debt Management Advisory Committee which will advise the Finance Minister on their efficacy, affordability and value for money.

Mr Hou says the Honiara Club has congratulated the government on its fiscal discipline and reduction in debt levels since 2005 when an agreeement with the Club was first signed.

That agreement is seen as a tool for fiscal and debt discipline.