World Bank Works to keep Pacific Island Nations Connected to Global Financial System

Up to 7 Pacific island nations will stay connected to the global financial system through a new World Bank project to strengthen Correspondent Banking Relationships (CBRs) in the region.

CBRs are accounts created by a bank to receive deposits, make payments or process other financial transactions for another financial institution.

The countries that will benefit from the project are Fiji, Kiribati, the Republic of the Marshall Islands, Samoa, Tonga, Tuvalu, Vanuatu and one regional organization, the Pacific Islands Forum, an intergovernmental organization that aims to promote cooperation among independent countries in the Pacific.

World Bank Group President Ajay Banga announced the project during his first trip to the region, explaining that the project will strengthen the regional approach and is designed as a platform for more Pacific countries to join and for bilateral and multilateral donors to participate.

The correspondent banking project is financed with $68 million through credit and grant financing through the International Development Association, the World Bank’s fund for the world’s neediest countries.