Kiribati Financial Sector Scores Again with Compliance Boost
The World Bank has approved a $2 million grant to support Kiribati’s third economic reform development policy operation, marking a significant milestone for the country’s financial sector.
Strengthening Public Financial Management and Promoting Private Sector Growth
The operation aims to build on Kiribati’s progress in improving public financial management and promoting inclusive, private sector-led growth since 2013. Key areas of focus include:
- Greater transparency in managing fisheries revenue
- Improved governance of the Revenue Equalization Reserve Fund (RERF)
- Better reporting and monitoring of public debt and liabilities
Commitment to Fiscal Resilience and Private Sector Growth
According to Minister for Finance and Economic Development Hon Teuea Toatu, the government is committed to building fiscal resilience and promoting private sector growth to create more jobs. “The continued policy reforms we are undertaking with the support of the World Bank will help improve delivery of essential public services like electricity, water, and sanitation, and more resilient public finances,” he said.
Supporting Kiribati’s Economic Reform Plan
The Third Economic Support Development Policy Operation directly supports Kiribati’s Economic Reform Plan, which has already delivered greater transparency around public debt and management of the RERF, as well as competition in the domestic mobile telecommunications market and measures to ensure the continued reform of the Public Utilities Board to achieve quality delivery of essential services.
World Bank Support
World Bank Acting Country Director for Timor-Leste, Papua New Guinea, and the Pacific Islands Robert Utz welcomed the move, saying: “This is the third in a series of programmatic budget support operations we are supporting, as the Government of Kiribati continues to improve fiscal sustainability and create conditions for more inclusive and private sector-led growth. We look forward to continuing to work with the government to improve the lives of all i-Kiribati.”
Funding and Impact
The grant is funded through the World Bank’s International Development Association (IDA), which provides support to the poorest countries. The operation builds on gains achieved by previous development policy operations in 2013 and 2014, further solidifying Kiribati’s commitment to financial reform and growth.
Overall, this significant investment will help strengthen public financial management, promote private sector growth, and improve the lives of all i-Kiribati citizens.