The Scottish government will not go ahead with its Islands Bond following public feedback.
Rural Affairs and Islands Secretary Mairi Gougeon said the government would now look at other ways of tackling depopulation.
She said: "The Islands Bond was never intended to be a silver bullet to address our island population challenges. "Rather, it was just one element of our wider work, across all Scottish government, to support our island communities." The government said that while islanders welcomed attention being given to depopulation, they had raised concerns about the proposed approach of the bonds scheme and whether it would achieve its objectives.
Scotland has more than 90 inhabited islands and there are communities spread across areas including the Western Isles, Highlands, Orkney, Shetland, Argyll and Bute.
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