Acting Governor of the Reserve Bank of Vanuatu (RBV), Dr. Michael Hillian, says the central bank has paused plans to tighten monetary policy in response to recent economic shocks, including the 7.3 magnitude earthquake.

Dr. Hillian stated that the RBV is now prioritising support for affected sectors by relaxing loan classification rules to ease pressure on businesses and boost economic recovery.

“We have a duty to ensure the financial system is stable, especially as Vanuatu faces de-risking and blacklisting challenges,” he said.

He also highlighted RBV’s push to explore micro and parametric insurance models, particularly for rural communities and small businesses, to strengthen resilience against future disasters.