The Governor of Central Bank, Denton Rarawa says the Pan Oceanic Bank’s support of the forestry sector has avoided a potential instability in the country’s economy.
A number of commercial banks in Honiara had closed their doors to logging companies in the Solomon Islands after they were being accused of supporting unsustainable logging in the country.
Speaking today at a media conference, Mr Rarawa said POB’s support was important after the Westpac Bank withdrew its support for the sector.
“The Government was very concerned that Westpac’s withdrawal would have a major impact on the economy because the forestry sector is such an important sector in the economy, and so the efforts done by the government especially the Prime Minister’s Office and we here in the bank to try and smooth out this potential source of instability in the economy once Westpac withdraws its support to the forestry sector.”
The Central Bank Governor also said, that the Pan Oceanic Bank’s entrance into the economy had avoided the potential instability.
Describing the logging company accounts as ‘forestry accounts’, the Central Bank Governor also confirmed the new Bank had taken on some of the accounts.
“We now have an institution in place, you are aware of POB’s entrant into the economy, that has ensured that the potential instability arising from Westpac’s withdrawal is sort of smoothed down. POB has taken on some of the forestry accounts and it has ensured that the instability has been avoided.”