ADB Signs $30 Million Loan with Solomon Islands to Bolster Fiscal and Climate Resilience
Deal News | Dec 11, 2024 | Asian Development Bank
The Asian Development Bank (ADB) and the Government of Solomon Islands have executed a $30 million concessional loan agreement, designed to reinforce the country's fiscal stability and its commitment to climate change initiatives. This marks the second and final subprogram under the Supporting Fiscal and Economic Recovery Program, which seeks to enhance reforms that bolster fiscal resilience and promote domestic resource mobilization through comprehensive tax reform. Initiatives under this program include the development of a public investment management system and financial policy reviews to foster private sector growth. Alongside ADB, the program receives co-financing from the governments of Australia and New Zealand, and the World Bank, and was developed in conjunction with the International Monetary Fund. The signing took place at the ADB Headquarters in Manila, further highlighting the commit to creating a prosperous, inclusive, and sustainable Asia-Pacific region.
Sectors
- Finance
- Public Sector
- Climate Change
Geography
- Philippines – The signing event took place at the ADB Headquarters in Manila, Philippines.
- Solomon Islands – The recipient of the loan and the location being targeted for fiscal and climate reforms.
Industry
- Finance – The article discusses a financial transaction where a loan agreement is signed between ADB and Solomon Islands.
- Public Sector – It involves governmental financial management and policy reforms in Solomon Islands.
- Climate Change – The article emphasizes initiatives related to climate change resilience as part of the loan's focus.
Financials
- $30 million – Amount of the concessional loan provided by ADB to Solomon Islands.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank (ADB) | Lender | Company | ADB is a regional development bank providing financial support and expertise. |
| Government of Solomon Islands | Borrower | Government | The government receiving the loan to enhance fiscal stability and climate resilience. |
| Rachel Thompson | Representative of Solomon Islands Government | Person | ADB Executive Director who signed the agreement on behalf of Solomon Islands. |
| Leah Gutierrez | ADB Director General for the Pacific | Person | ADB official who supported the loan agreement emphasizing the reforms for resilience. |
| Government of Australia | Cofinancer | Government | Provided parallel cofinancing for the program. |
| Government of New Zealand | Cofinancer | Government | Also contributed parallel cofinancing for the undertaking. |
| World Bank | Cofinancer | Company | Institution providing additional financial support alongside the ADB loan. |
| International Monetary Fund (IMF) | Program Design Support | Company | Collaborated in designing the program framework. |