The Asian Development Bank (ADB) will provide an $80 million loan and the Government of New Zealand a $21 million grant to help the Cook Islands’ economy transition from recovery to sustainable, private sector-led growth.


Through the Supporting Sustainable Recovery Program, the funding will help the Government of the Cook Islands progress ongoing reforms to improve public financial management and foster private sector activity. The program also provides a precautionary financing option that will allow the government to access critical funds for public sector operations, services to vulnerable households, and private sector recovery if economic and fiscal conditions deteriorate.


“The Cook Islands’ nascent economic recovery could unwind if further impacts from the pandemic delay the revival of its tourism industry,” said ADB Public Sector Economist and program team leader James Webb. “Reforms supported under this program will address both immediate recovery needs as well as longer-term development constraints by improving budget and revenue management and encouraging the private sector to grow and diversify. The precautionary financing option also allows the government to guard against a slower than expected recovery, and better manage its use of debt financing.”