(16 July 2015 – Australia/Pacific Islands) Westpac’s plans to sell its operations in Vanuatu and the Solomon Islands have been delayed.
In January, the bank announced it would sell its businesses in five Pacific Island nations to the Bank of the South Pacific for A$125 million.
However, due to the devastating impact of Cyclone Pam in March, the Reserve Bank of Vanuatu decided it was not currently the best time for a change of control in the nation’s banking sector.
The Solomon Islands operations sale has also failed to receive full approval from the Central Bank of Solomon Islands.
Consultation with the Central Bank of Solomon Islands will continue in order to obtain all necessary approvals, Westpac said.
“Westpac will continue to support Vanuatu through its recovery process, and it will be business as usual for our customers and employees,” it said.
The bank's sale of its Pacific Island operations will not have a material impact on its financial position, it said.
Deals worth A$91 million have already been finalised with the sale of Westpac’s operations in the Cook Islands, Samoa and Tonga.