6 Dec 2005

Solomon Islands government negotiates write-off of US$11m dollar debt

3:38 pm on 6 December 2005

The Solomon Islands government has negotiated a partial write-off of a multi-million dollar debt it owed an, as yet, unnamed overseas financial institution.

The finance minister Peter Boyers, has told parliament, the government was able to get 75 percent forgiveness on an 11.5 million US dollar debt.

In winding up yesterday's general debate on his 2006 budget Mr Boyers said debt now costs the government about 20 percent of the budget.

He says the government has repaid more than 90 percent of its business debts.

Mr Boyers says such a practical and responsible attitude to debt builds the confidence of local business and overseas investors that Solomon Islands is now a more reliable place in which to invest.