The World Bank has announced a $68 million project to support seven Pacific Island countries in maintaining access to global financial systems by enhancing correspondent banking relationships (CBRs). The initiative will benefit Fiji, Kiribati, the Marshall Islands, Samoa, Tonga, Tuvalu, Vanuatu, and the Pacific Islands Forum. The project aims to address a significant decline in CBRs, which have dropped by 60 per cent in the Pacific region over the last decade. World Bank President Ajay Banga introduced the initiative which provides immediate support through subsidised banking services for institutions at risk of losing their last CBR in a key currency. The project also focuses on strengthening regulatory frameworks and ensuring compliance with international standards, setting the foundation for a long-term solution based on regional cooperation and transaction aggregation. The funding, sourced from the International Development Association (IDA), will safeguard essential financial flows needed for trade, investment, remittances, and disaster relief, ensuring continued access to critical financial services across the Pacific. Attribution: World Bank Subediting: M. S. Salama
