Monday, 29 June 2009 9:06 AM

Solomon Islands Economic Challenge

Solomon Islands may go through more critical economic crisis if the logging industry continues to decline.

The Central Bank Governor, Denton Rarawa, said the decline of the industry, is a major challenge for the country, in view of the current global economic crises.

Mr. Rarawa said the country must find an alternative sources to replace logging if what forecasters had predicted that Solomon Islands forests may depleted by 2014.

He said the logging sector forms a major part of the country's economy and generates up to 70 percent of foreign exchange earnings.

Mr. Rarawa said this is about 20 percent of government's revenue.

He said the message is for resources owners to allow their resources for developments.

Governor Rarawa said development partners and donors are ready to help in reforming the country's mechanisms to improve its economy.

He made these comments when he wound up the Bank's Money Smart Day program in Gizo last week.

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By GEOFFREY MAURIASI USP, Lacuala Campus, Fiji
By CHARLES KOULI Gizo, Western Province
By JAQUE FRIEDMAN New Zealand