The Governor of the Reserve Bank, Sada Reddy said the biggest challenge facing the government of the day is how they can raise investment and exports in the country.
Speaking to the members of the Fiji Institute of Accountants, Reddy said Fiji needs to raise investment to over 25 percent from its current level of 13 percent.
He also pointed out that there is a need to improve infrastructure to facilitate economic growth as we live in a world of competition where many countries have a low cost structures and high productivity.
Reddy also revealed that the total contingent liabilities of the government stood at $1.7 billion in 2009 and the government must stop guaranteeing loans for institutions which becomes a liability to the State.
Reddy said this trend must stop because what it does is that without government really knowing what is going on in the institutions whose debt government has guaranteed, and suddenly the government is faced with those contingent liabilities coming on to the governments books and seriously compromising government finances.
He said there are numerous instances in the past where government had to step in to bail out the institutions, because of the guarantee.
Highlighting the National Bank of Fiji saga which cost taxpayers $372 million in total, Reddy said there are signs that few other institutions whose debt government has guaranteed may not be in a position to meet their obligations.
Reddy said this situation must not be allowed to continue.
Meanwhile, Reddy also said that a number of people have been commenting on the US$150 million bond issued in September 2006 and is due for repayment in September 2011.
Reddy said the concerns are rightly so as to whether Fiji has the capability to repay the loan.
However, he assures that the government and the RBF are actively exploring all possibilities to meet this repayment and Fiji as usual will meet all its foreign obligations whatever it takes.
The Great Council of Chiefs has made a number of recommendations in its submission to amend the 2013 Constitution which includes that the GCC is to b...
2 hours ago
As the Judicial Services Commission’s recommendation to the President regarding the FICAC Commissioner position is still on hold until it considers ...
1 hour ago
Justin Whippy, who is charged with one count of trespassing at the Government Building, has been remanded in custody.
He appeared before Magistrate ...
2 hours ago
Students at Suva Grammar School are being urged to take responsibility for keeping their school and environment clean as part of efforts to address ...
3 hours ago
Rishikul Sanatan College has donated $1,350 to support the Communications Fiji Foundation appeal for children living with cancer.In an interview with ...
3 hours ago
Vehicles travelling through Sigatoka Town are being advised to expect temporary disruptions as the Fiji Roads Authority carries out scheduled road ...
3 hours ago
I was invited to travel to New Zealand by the Fiji Sports Council for a grassroots 7s tournament in 2024, I travelled business class but it was ...
27 days ago
