Government to Borrow Cautiously Under New Act

Solomon Islands Minister of Finance and Treasury, Hon Rick Hou, announced that the new Public Financial Management Act will facilitate better decisions on Government Borrowing, On-lending and Guarantees.

Minister Hou said that the Act contains key elements of the Government’s Debt Management Strategy (DMS) and meets undertakings made to Honiara Club members to include the main aspects of the DMS in this legislation. The Honiara Club is the group of donor countries and agencies that helped restructure Government debt in 2005.

He clarified that the new Act formalizes the establishment of a Debt Management Advisory Committee (DMAC), which will advice the Minister on all new debt-related proposals. The Committee will comprise executives from the Ministry of Finance, the Central Bank of Solomon Islands, theConnect on Facebook

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