SINPF marks another milestone in its 44 years journey
In Honiara on 25th April 2022, the Deputy Chairman of Solomon Islands National Provident Fund Board David Rupokets says the official soft launch of the Solomon Finance Limited marks another milestone in the Fund’s 44 years journey.
Speaking at the launching, unfortunately we are only able to co-host with SFL Board a soft launch due to the current situation we are in at the moment and constrained financial resources.
Today marks another milestone in the Fund’s 44 years journey when we will announce Solomon Finance Ltd commencement of business date.
He said besides being an investment for the members of the Fund for their returns, it is also a service and benefit to our members where they can access financing to support them with their retirement goals, without touching their retirement savings whilst they are still in employment.
Director Rupokets has confirmed that the approved investment outlay for SFL in cash and guarantee is $15 million. The SFL’s loan book will be funded by term deposits that will placed by SINPF Board in SFL.
It has taken the SINPF Board past and present, more than 12 years to achieve its vision to provide pre-retirement credit solutions to our members through a wholly owned credit subsidiary. Today it is now possible as the SINPF will be the 2nd provident or superannuation fund in our Pacific region to establish a separate wholly owned credit institution for its members.
SFL is a channel that will encourage members to develop personal plans for their retirement carefully before seeking financing from SFL so that it builds up their wealth and savings and helps them enjoy a comfortable retirement in their sunset years.
I want to re-emphasis the message when my Chairman of SINPF Board announced the successful granting by the Central Bank of Solomon Islands the license to conduct banking business as a credit institution to SFL on December 13, 2021.
His message on behalf of the SINPF Board and SFL Board was that the establishment of SFL is “’consistent with the Fund’s objective and vision to support members to build up their wealth for their old age and retirement while they are active and still in employment.’”
He explained this statement means that SFL is not an early withdrawal channel for members to withdraw their contributions from the Fund.
When members draw on their retirement funds for their old age to fund these and other life contingencies, they will reduce what they will receive later when they reach their retirement or old age.
Before announcing the formal commencement of SFL business, I would like to share with you our members a predicament faced by the SINPF Board when considering member requests for exemptions to the Minister of Finance for partial early withdrawal of their savings.
The major reasons for their exemption requests are school fees, medical and health fees, building of a house, purchase of a land and establishment of small income generating business.
And for the major reason for us being here today, it gives me the pleasure and honor, to announce to you and especially members of the Fund that the Solomon Finance Limited will officially open for business on Monday 28th March 2022 at 9 am.
With the commencement of SFL, members can now channel these requests through the SFL with well-planned proposals.
Present at the soft launch last Friday were, Minister of Finance and Treasury Harry Kuma, the Permanent Secretary of Finance Mr. Mckinnie Dentana, and Dr Luke Forau, Governor of the Central Bank of Solomon Islands, members of the SINP Board of Directors, SINPF Mangers and senior staff and officials in Government ministries.