Pacific Island technical assistance
The authorities of eight Pacific island countries—Federated States of Micronesia, Fiji, Republic of the Marshall Islands, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu—have agreed to the final text of a declaration on cooperation, intended to foster confidence in their financial sectors and in that of the region as a whole. The declaration was jointly drafted by staff from the Pacific Financial Technical Assistance Centre (PFTAC) and the Reserve Bank of Fiji, together with supervisory agencies that participate in the Pacific Islands Prudential Regulation and Supervision Initiative (PIPRSI), according to a press release issued by the PFTAC on March 1.
A joint project of the United Nations Development Program and the IMF, the PFTAC is playing a key role in advancing regional cooperation and coordination in financial sector regulation and supervision in the Pacific (see IMF Survey, January 10, page 15). The PIPRSI was formed because the Pacific island countries, despite improvements in their regulatory systems and supervision over the last decade, remain vulnerable to financial sector volatility and illegal financial operations. They therefore decided to reinforce their commitment to financial sector soundness and stability. Specifically, the countries will take steps to bring their domestic regulatory environment and supervision in line with international best practice. They will also commit to establishing more formal and extensive arrangements for closer cooperation and coordination among the members of the initiative.
For more information, contact Klaus-Walter Riechel, E-mail: