Posted on 24 July 2024
The World Bank, with backing from the United States and Australia, is preparing a crucial financial lifeline for Pacific Island nations. This initiative comes as Western banks withdraw from the region, raising concerns that China might step in to fill the void. The $77 million proposal aims to provide emergency access to dollars or other major currencies, ensuring that these island nations can continue to engage in trade and receive remittances. The departure of Western banks has left many of the 18 small countries and territories of the Pacific Islands Forum at risk of being cut off from global finance, a situation described by an Australian official as “Armageddon.”
Source: Reuters
Photo: Sally Sitou / AusAID via Wikimedia