No liquidity issues due to proper allocations of funds by Govt: Exec

THE Government has been able to manage liquidity issues well through the budgetary allocations of funds, says the Bank South Pacific (BSP) Financial Group Ltd.
Providing an update on business progress, chief executive officer Robin Fleming said effective allocation of funds by the Government through the budget has ensured that there were no liquidity issues faced by businesses.
Fleming said the absence of more stringent Coronavirus (Covid-19) measures had ensured that business were able to operate normally.
“Certainly from a liquidity perspective, the Government has been able to effectively distribute funds appropriated in the budget,” Fleming said. “There has been sufficient liquidity to provide access to funding and also to ensure reallocation of any service liquidity into investments.
“So proper allocation of funds by the Government ensured that there has been no liquidity issues.
“The absence of any more stringent movement measures have also given businesses the ability to operate as normally as possible notwithstanding that there remains Covid-19 in the community.
“Equally certain businesses have been able to adapt in a manner which has enabled them to preserve some of their cash flow and generate business activities.”
Fleming said the influence of the informal sector and some of the more stringent movement measures that we had last year which put barriers in the informal sector to operate had a significant flow on effect had been underestimated.
“The formal sector being able to operate now has certainly been a positive influence on a number of sectors of the economy.”