Post tension saw the Solomon Islands facing a debt crisis with the Government in default on all of its official debts and facing a large backlog of informal debts (such as debts related to government guarantees of state owned enterprises and unpaid trade creditors). Solomon Islands’ debt position was considered, at that stage, to be unsustainable and unaffordable.
In October 2005, the Solomon Islands Government signed an agreement with creditors, known as the Honiara Club Agreement, with the aim of bringing the debt position down to a sustainable and affordable level. Post Agreement, the Government managed its debt and economic affairs consistent with the agreed principles of the Agreement, one of which was to not enter into any new borrowing. As a result, the Solomon Islands’ debt position is now at a level that is both sustainable and affordable.
In 2011, the International Monetary Fund (IMF), in recognition of the Solomon Islands’ improved debt position, upgraded the Solomon Islands from red light (high level of debt distress) to yellow light status (moderate risk of debt distress) under the joint IMF/World Bank Debt Sustainability Framework.
Given the improved debt position and the upgraded IMF debt status, the Honiara Club Agreement was reviewed in 2012 to enable new Government borrowing, subject to a, yet to be formalized, governance framework. The Solomon Islands Debt Management Framework came into effect in 2012 with Cabinet endorsing a new Debt Management Strategy. The Framework was amended and strengthened in 2016 and now includes:
- the Public Financial Management Act (2013);
- the Debt Management Strategy;
- a SIG Direct Borrowing Policy and Evaluation Guidelines;
- a Sub-national Direct Borrowing Policy and Evaluation Guidelines;
- an On-lending Policy and Guidelines; and
- a Guarantee Policy and Guidelines.
Debt Management Framework
Debt Management Strategy
The Minister for Finance approved the Debt Management Strategy in September 2016.
Debt Management Strategy
SIG Direct Borrowing Policy
The Minister for Finance approved the SIG Direct Borrowing Policy and SIG Direct Borrowing Evaluation Guidelines in September 2016. These documents are to be read in conjunction with each other.
SIG Direct Borrowing Policy
SIG Direct Borrowing Evaluation Guidelines
Sub-national Direct Borrowing Policy
The Minister for Finance approved the Sub-national Direct Borrowing Policy and Sub-national Direct Borrowing Evaluation Guidelines in September 2016. These documents are to be read in conjunction with each other.
Sub-national Direct Borrowing Policy
Sub-national Direct Borrowing Evaluation Guidelines
On-lending Policy
The Minister for Finance approved the On-lending Policy and On-lending Evaluation Guidelines in September 2016. These documents are to be read in conjunction with each other.
On-lending Policy
On-lending Evaluation Guidelines
Guarantee Policy
The Minister for Finance approved the Guarantee Policy and Guarantee Evaluation Guidelines in September 2016. These documents are to be read in conjunction with each other.
Guarantee Policy
Guarantee Evaluation Guidelines
Debt Management Data
Treasury-Bills
Treasury-Bill tenders are conducted on Tuesday of every week. The schedule of tenders and results for Treasury-Bill tenders are located on the Central Bank of the Solomon Islands website.
http://www.cbsi.com.sb
2020 Monthly Debt Reports
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March
April
May
June
July
August
2019 Monthly Debt Reports
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