EU Budgetary Grant Reflects Trust

EU Budgetary Grant Reflects Trust in Solomon’s Reforms

The Minister of Development Planning and Aid Coordination, Steve Abana says the European Union Budgetary Grant of 15.2 million Euro (SB$160 million) to Solomon Islands reflects the EU’s increasing trust in Government’s commitment to essential reforms.

The grant, which is intended to help bridge a budgetary gap caused by the global economic crisis, will be paid when a new Government is formed after the August 4 national election.

Inorder that Solomon Islands qualify for the budget support; government must meet a set of strict rules set out by the EU – one of which is showing serious commitment to essential reforms.

Minister Abana and Aldo Dell Arricia, European Ambassador and Head of Delegation to Papua New Guinea and Solomon Islands signed documents on the Agreement in Honiara Monday this week.

Minister Abana described the signing as a major milestone in the partnership between the Solomon Islands Government and one of its long term development partners, the European Union.

"This is a major achievement for the government during its tenure, let alone Solomon Islands being the sole Pacific ACP country to be retained in the 2009 package in Brussels books," he said. “This occasion indeed demonstrated the increasing level of confidence and trust EU has in the Solomon’s Government."

Currently most European Development Fund (EDF) resources that support government priority policies are implemented through individual projects.

The budget support initiative also calls for strong commitment to maintain stability oriented macroeconomic framework, to implement its national development strategy, including necessary reform initiatives to improve the public finance management system.

ENDS

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