Thursday, 21 October 2010 8:26 AM
Solomon Islands Improves in Debt Servicing
Solomon Islands have made significant progress in its international debt repayments over the last few years and are continuing this year.
The World Bank says repayments of international debt are important because "it enhances trust and confidence of international lenders."
World Bank's Economist Tobias Hague Confirmed yesterday that with this progress, the World Bank and International Monetary Fund has this year moved Solomon Islands from red to yellow light status.
Country manager of World Bank in Solomon Islands, Edith Bowels, explains that this does not mean more aid in general "but the red and yellow status system is to do with the financing of the world bank."
She says this shift by Solomon Islands from red to yellow status means that finance available to the country would be a mix of grants, and loans at very low interest rates.