The Japan-Pacific Islands Finance Ministers’ Meeting (May 5, 2025)

On May 5, 2025, the second Japan-Pacific Islands Finance Ministers’ Meeting was held in Milan, Italy, with the attendance of 12 Pacific Island Countries (PICs). Mr. Katsunobu Kato, Minister of Finance, Japan, and Dr. Aisake Valu Eke, Prime Minister and Minister for Finance, Tonga, co-chaired the meeting.
During the meeting, Ministers welcomed the holding of the second ministerial meeting building on the inaugural meeting last year. They also exchanged candid views on the key development issues that PICs are facing, such as sustaining correspondent banking relationships (CBRs), promoting disaster risk financing (DRF), and strengthening domestic resource mobilization (DRM). In addition, they agreed to meet regularly at the margins of ADB's annual meetings in the future.
The outcomes of the discussion are summarized in the “Co-Chairs’ Summary of the second Japan-Pacific Islands Finance Ministers’ Meeting”. The main points are as follows:

• Ministers emphasized that the withdrawal of CBRs is a major threat to the economy and society in the Pacific region. PICs appreciated Japan’s assistance, including financial support for the World Bank’s Pacific Strengthening CBR Project.
• Ministers reaffirmed the importance of promoting DRF to enhance fiscal resilience to natural disasters in the Pacific region. PICs welcomed progress on Japan's initiatives such as the launch of the pilot program to introduce the Climate Resilient Debt Clause (CRDC) for new ODA loans.
• Ministers underscored the importance of strengthening DRM for sustainable fiscal management. Japan has supported PICs in strengthening DRM in coordination with international partners.