Press Release No. 15/575

Press Release: IMF Executive Board Approves an Extension of the Extended Credit Facility Arrangement for Solomon Islands

December 18, 2015

On December 1, 2015, the Executive Board of the International Monetary Fund (IMF) has approved an extension of Solomon Islands’ Extended Credit Facility (ECF) Arrangement to March 31, 2016. The Executive Board’s decision was taken on a lapse-of-time basis.¹

The extension will allow the authorities enough flexibility to make further progress in

implementing their structural reform agenda under the program. The extension will also provide sufficient time for the Board to consider the fifth and sixth reviews of the ECF arrangement and allow for the related disbursements.

The ECF arrangement² for Solomon Islands in the amount equivalent to SDR 1.04 million (about US$1.59 million or 10 percent of quota) was approved by the IMF’s Executive Board on December 7, 2012 (see Press Release No: 12/479).

¹ The Executive Board takes decisions under its lapse of time procedure when it is agreed by the Board that a proposal can be considered without convening formal discussions.

² The Extended Credit Facility (ECF) is the IMF’s main tool for medium-term financial support to low-income countries. It provides for a higher level of access to financing, more concessional terms, enhanced flexibility in program design, and more focused, streamlined conditionality. Financing under ECF currently carries a zero interest rate, with a grace period of 5.5 years, and a final maturity of 10 years.