A TOTAL of $70 million is allocated for immediate recovery measures 2 under the Economic Stimulus Package third component to address the impacts of COVID-19 pandemic on the country’s economy.
The prime minister announced on Monday that the government’s $70 million package proposes equity injection into government-owned or partly owned companies to enable them to keep afloat and keep supporting the economy.
“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,” Sogavare added.
He further stated that 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 $73 million is allocated towards this incentive,” Sogavare said.
Here is the breakdown of the proposed measures
• Solomon Airlines – $20 million (Grant and Concessional loan)
• Soltuna – $5 million
• Support will also be provided to KFPL- amounts not disclosed.
• Solomon Water – $5 million (Grant)
• DBSI – $20 million (Capital)
• CEMA – $2 million (Grant) this is to ensure CEMA enhanced its marketing and quality certification capabilities.
Sogavare further announced that an additional capital grant injection of $18 million into DBSI to provide a specific concessional financial product to support large SME’s or companies.
“This product will be provided to borrowers at an attractive concessional interest rate.
“DBSI is on track to be officially launched and opened by the end of this month, May 2020,” Sogavare confirm.
By ANDREW FANASIA