$40m for DBSI re-establishment

By Gary Hatigeva

THE government has proposed $40 Million for the re-establishment of the Development Bank of Solomon Islands (DSBI), it is revealed in their recently launched policy document

The allocation comes following cost assessment carried out by a taskforce, determining how much capital was needed for the bank to be fully operational, along with a national awareness and consultation programme on the changes.

With little time left before the 10th Parliament is dissolved, the newly elected Solomon Islands Democratic Coalition for Change Government (SIDCCG) has been forced to come up with a set of priority areas within its attractive policy statement and the re-establishment has made the list.

The re-establishment of the Rural Development Bank while revealed to be one of the key priorities, it seemed to have drawn the highest allocation in the government’s 2018 Budget.

Parliament is expected to meet on the 28th of this month, and having this reinstatement will also need the blessing of members of parliament.

As outlined in its policy priorities, strategic actions and outcomes document, the government through the Ministry of Finance and Treasury is taking up the initiative, modeling it under its Public Private Partnership (PPP) Framework.

The Hou-led government is optimistic that this institute (DBSI) if re-established, is one avenue that will help Small and Medium Enterprises (SME), which will have both direct and indirect positive impact on the national economy of the country.

The government is expected to get the DBSI Act back into parliament for its enactment and have the bank launched.

The development bank stopped operating more than a decade ago following civil unrest which resulted in mass loan defaults.

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