Opposition MP Premila Kumar is questioning why the Fiji Development Bank has more than $34 million in loans to sugar cane farmers, saying the Sugar Cane Growers Fund was established to provide financial support to farmers.
Speaking during the parliamentary debate on the Review Report on the Fiji Development Bank 2024 Annual Report, Kumar says supporting cane farmers is important, but questioned whether the Sugar Cane Growers Fund should be doing more to assist them.
She says thousands of Fijians depend on the sugar industry for their livelihoods, making it important that the financial risks being taken by FDB are properly managed.
Kumar says FDB also has about $20 million in lending to the Fiji Sugar Corporation, raising concerns about the bank's overall financial exposure to the sugar industry.
She says FSC has faced serious financial difficulties, with its debt reported at around $310 million even after $200 million in Government debt was written off.
Kumar is calling on FDB to explain what provisions it has made for its exposure to FSC and how the risk is being managed.
Deputy Prime Minister Manoa Kamikamica says FSC's debt is guaranteed by the Government, which is probably why FDB continues to hold the loan.
He says work being carried out by the Parliamentary Select Committee should help ensure FDB's exposure to FSC does not deteriorate.
The Review Report on the Fiji Development Bank 2024 Annual Report was tabled in Parliament on the 27th of May this year.
Kumar also raised concerns about whether women entrepreneurs are receiving enough financing to grow their businesses.
She says while women make up about 30 percent of FDB's account holders, they account for only 18 percent of the value of its loan portfolio.
Kumar says this suggests women may be accessing finance mainly at the micro-business level and need greater support to grow into small and larger businesses.
She highlighted the case of a woman in Sigatoka who was unable to secure an FDB loan to start a hair and beauty salon and instead borrowed money from neighbours and friends.
Kumar says FDB approached the woman about a year later to offer assistance, after she had already established the business herself.
Finance Minister Esrom Immanuel earlier told Parliament that more than 4,000 women-led businesses have accessed financing under the broader Women Entrepreneurs' Finance Initiative in the past three years.
FDB recorded a consolidated net profit of about $5.6 million in 2024, an increase of 46 percent compared to the previous year.
