Minister Lilo Welcomes Final IMF Report

Minister Lilo Welcomes Final Imf Report On Solomon Islands

The Minister for Finance and Treasury, the Hon Gordon Darcy Lilo, today welcomed the IMF Executive Board's Final Report for 2007 on Solomon Islands' economic and reform progress, released last Friday.

"Like the IMF Article IV delegation that visited Solomon Islands earlier this year, the Executive Board of the IMF, has strongly supported the many reforms this Government has been implementing to strengthen our economy and provide greater opportunities to all Solomon Islanders", the Minister said.

"I welcome the IMF's repeated recognition that the Government is working hard to implement important reforms. And I acknowledge their ongoing constructive advice about important issues we still need to tackle," the Minister said.

The Minister said he was particularly pleased that the IMF had strongly welcomed "the Solomon Islands' favorable near-term growth prospects, and the Solomon Islands authorities' success in maintaining macroeconomic stability..."

"I also welcome the IMF's positive recognition of many of the reforms we have implemented, including:

* Reducing import duties and simplifying the import duty structure;

* Reducing tax exemptions and improving the transparency of the tax exemption application process;

* Improving tax administration and collection in the Inland Revenue Division;

* Strengthening the budget process, including the establishment of new processes to determine key policy and expenditure priorities; and

* Recent improvements in the investment and business environment, through initiatives such as the new Foreign Investment Act, simpler Work and Residency Permit Procedures, and the new Small Business Finance Scheme.

The Minister also welcomed the IMF's endorsement of further reforms which the Government is currently working to introduce, such as:

* Regular adjustments to the determined price of export logs planned to be introduced on 1 October;

* Adopting a medium-term fiscal framework to help anchor fiscal policy;

* Further comprehensive tax reform; and

* Restructuring of State Owned Enterprises, including implementation of management contracts for SIEA and SIWA.

"As a matter of fact, I am passionate and personally committed to introducing these reforms, and the many other reforms that will make the Solomon Islands economy, and the fiscal position of the government, even more stronger," the Minister concluded.

ENDS

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