They have implemented important reforms to improve the governance and management of the Revenue Equalization Reserve
Fund (RERF) and replenished the fund from the cash reserves.
Global financial market turmoil can feed into the domestic economy through the exposure of the Revenue Equalization Reserve
Fund and the KPF, the countrys two major savings vehicles.
The premium paid to SLIC has been protected through creation of Consolidated Claim Reserve Account (CCRA) in case of life insurance and Equalization Reserve
Fund (ERF) with the provision of claw back approach in case of health insurance to safeguard unutilized premium amount.
00 billion to dividend equalization reserve
from un-appropriated profits to maintain divide declarations.
However, as the banks build up a profit equalization reserve
, which can be used to finance payouts during difficult years, depositors benefit from some protection of their returns during economic downturns.
is required for other natural catastrophes.
The fourth in a series since 2013, the financing will assist in strengthening public financial management through improved governance of the country's sovereign wealth fund (known as the Revenue Equalization Reserve
Fund (RERF)), and better reporting and monitoring of public debt and liabilities.
Global financial market turmoil may feed into the domestic economy through the exposure to foreign assets of the Revenue Equalization Reserve
Fund (RERF) and the Kiribati Provident Fund (KPF), the countrys two main savings vehicles.