20 Dec 2005

Solomon Islands hails Australian promise to write off debt

9:13 am on 20 December 2005

The Solomon Islands government says it's reaping the benefits of confronting its problems, with Australia promising it will write off debt.

The Finance Minister Peter Boyers says it has given a two year moratorium on debt repayments.

He says by 2007 Solomon Islands will be eligible for at least 60 per cent of its debt to Australia to be forgiven.

The Minister says this depends on continuing good budget management and following-through of reforms under way.

He says this shows that good government is part of a virtuous circle.