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IMF approves $28.5 million disbursement to Solomon Islands

Christian Fernsby ▼ | June 20, 2020
The Executive Board of the International Monetary Fund (IMF) approved a disbursement to the Central Bank of Solomon Islands for an amount of SDR 20.8 million ($28.5 million, 100 percent of quota).
Solomon Islands street
IMF   Solomon Islands street
Comprising SDR 6.93 million ($ 9.5 million) under the Rapid Credit Facility (RCF) and SDR 13.87 million ($ 19 million) under the Rapid Financing Instrument (RFI) to help cover urgent balance of payments needs stemming from the coronavirus pandemic.

Topics: IMF Solomon Islands

The government has implemented strong measures to prevent the entry of COVID-19 and Solomon Islands has had no confirmed cases.

Nevertheless, a sharp decline in commodities exports and tourism is expected to negatively impact the economy and weaken the external position, and necessary containment efforts will slow domestic economic activities.

The authorities’ immediate policy responses have focused on strong and timely containment measures to limit the risk of a local outbreak while reprioritizing spending towards health care.

The authorities have also recently adopted a fiscal stimulus package with policy measures targeted at providing social assistance, protecting jobs and incomes, and stabilizing the domestic economy.

The IMF financial support will make a substantial contribution to filling immediate external financing needs that have emerged due to COVID-19.

It is also expected to catalyze additional support from development partners. â–