Debt in Solomon Islands

Formal borrowing in Solomon Islands is available through commercial banks such as ANZ, BRED Bank Solomon, BSP and Pan Oceanic Bank, as well as BSP Finance Solomon Islands, Credit Corporation Solomon Islands, Solomon Finance and the Development Bank of Solomon Islands. Other options include about 17 credit unions, most of them employee-based or concentrated in Honiara, SPBD Microfinance, the SINPF youSave programme for the informal sector and M-Fund digital nano-loans for eligible youSave members. Each provider sets its own eligibility and underwriting rules. Remote geography, transport costs, missing or inconsistent credit histories and the absence of a national identity system can make access more difficult. Savings groups and savings clubs combine regular member contributions with withdrawals and member loans. In some remote villages, they may be the only available financial service. Their bylaws, group decisions and customary practices determine repayment expectations, so their practical enforcement can differ from a formal lender's contract. The Registrar of Cooperative Societies registers cooperative societies, while CBSI and savings-group practitioners support financial literacy and members' rights. These groups do not form part of a single national debt-relief or insolvency system. A borrower should keep a complete list of lenders, balances, interest, fees, security, due dates and missed payments. A lender or other party owed money is a creditor, and the person or company that owes it is the debtor. If repayment becomes difficult, the borrower should contact the bank or lending institution promptly and request a documented repayment plan or other workout. Solomon Islands law does not provide a general statutory entitlement to a repayment holiday. Contractual payment duties, disclosure requirements and security terms continue to depend on the individual agreement. Informal group obligations depend on the group's rules and applicable customary practice. CBSI Prudential Guideline 8, known as PG8, requires interest, fees and charges to be disclosed before a credit contract is concluded. The Credit Reporting Regulations 2025 establish rules for collecting, using and protecting credit data and provide for authorised credit-reporting bodies and responsible lending. If a lender handles a complaint inadequately, the borrower should first use the lender's Consumer Complaints Unit. Under PG9, the lender should make a decision within a maximum of 30 calendar days after receiving the complaint; an unresolved matter can then be escalated to CBSI. The National Financial Inclusion Unit supports financial literacy and consumer empowerment, but the reviewed official sources do not identify a single national debt-counselling or consumer-insolvency service. Missed contractual payments can lead to collection activity, a negotiated workout or a money claim. Secured debt involves an asset or other security supporting the creditor's claim, so the contract and security document determine the available enforcement options. The Secured Transactions Act 2008 provides a framework for secured transactions. A charge over land may be used to recover debt and interest through court proceedings under the Land and Titles Act [Cap. 133], with enforcement applications handled by the High Court. The notice given, the existence of a court order, the asset type and the wording of the lender's documents can change the result. Personal bankruptcy is a formal court-based process under the Bankruptcy Act [Cap. 3]. After a final judgment, a creditor may issue a bankruptcy notice, and either a creditor or debtor may petition through the court process described in Chapter 15.1 of the Courts (Civil Procedure) Rules 2007. Access, costs and timing depend on the case. The Public Solicitor's Office provides constitutional legal aid and advice, including civil assistance for money and property claims. Eligibility depends on factors such as financial situation, the legal problem, age, disability and communication needs. Weekly clinics operate in Honiara and provincial appointments may be available, but representation is not automatic and private legal, court and transport costs can arise. Company debt follows a different legal framework. The Companies (Insolvency and Receivership) Act 2009 provides for compromises with creditors, liquidation, receivership, secured and unsecured claims, claim documentation and creditor priorities. This framework primarily concerns companies and is not a general solution for household debt. Government borrowing is public debt and should not be confused with household or private debt. On 30 October 2025, official public debt was reported as SBD 1,443.90 million in domestic debt and SBD 2,771.29 million in external debt, for a total of SBD 4,215.19 million and 27% of GDP. The Ministry of Finance and Treasury Debt Management Unit records and reports government borrowing and debt servicing, while CBSI acts as banker and fiscal agent for instruments such as Treasury bills and bonds. These figures do not show how much households owe. No current official national figure for household-debt stock, arrears prevalence, consumer-bankruptcy volume or standardized debt-counselling caseload was identified in the available research. Financial-account access statistics should not be treated as measures of debt prevalence. The practical situation differs between Honiara and the provinces, especially where formal lenders, legal services and transport links are limited. A borrower facing serious arrears should preserve contracts, statements, notices and payment records, seek a written arrangement from the creditor and obtain legal advice when enforcement, land security or bankruptcy becomes possible.