$20M each to Solair, DBSI - Solomon Star News

$20M each to Solair, DBSI

06 May 2020

SOLOMON Airlines and the soon to open Development Bank of Solomon Islands (DBSI) will each receive $20 million under the stimulus package Prime Minister Sogavare unveiled, Monday.

Sogavare launched the $309 stimulus package his government produced to cushion the negative effects of COVID-19 on the economy.

Solomon Airlines and DBSI will receive their allocations under the stimulus package Immediate Measures 2.

Sogavare explained this component proposes equity injection into government-owned or partly owned companies to enable them to keep afloat as well as to support and sustain the economy.  

He said that Solomon Airline’s $20 million is for grant and concessional loan whilst for DBSI, it’s for capital.

He also announced that an additional capital grant injection of $18 million will be made to DBSI to provide specific concessional financial products to support large SMEs or companies.

“This product will be provided to borrowers at attractive concessional interest rates. 

“DBSI is on track to be officially launched and opened by the end of this month.”

Sogavare further added that others which will also be benefitting include Soltuna and Solomon Water with each allocated $5million.

He said other privately owned large companies will also be assisted by way of export credit or other liquidity support through the banking system to maintain production and employment. 

He added that the Commodity Export Marketing Authority (CEMA) was allocated $2miilion whilst support will also be rendered to Kolombangara Forestry Products Limited (KFPL). 

Sogavare said the $2million grant for CEMA is to enhance its marketing and quality certification capabilities. 

 “These enterprises are important players and taxpayers in the economy.

“This measure is a combination of direct grant and concessional finance and a total of SBD75 million is allocated towards this initiative,” he said.