ADB report did not question economic projections stated by govt, 9 yrs of growth and debt figures - Sayed-Khaiyum

Acting Prime Minister and Minister for Economy, Aiyaz Sayed-Khaiyum stresses the Asian Development Bank report did not question the economic projections that the government has stated in the public and neither it has questioned the 9 years of growth and debt figures.

While speaking on the motion that Parliament debates the Review of Fiji Development Bank 2019 Annual Report, Sayed-Khaiyum says the fact is that the government has highlighted to the ADB that Fiji should be entitled to concessional loans because of our vulnerability to climate change.

He says Fiji was classified as a middle income country although we are a developing country and their argument was that Fiji should be entitled to concessional financing because we are at the cold face of climate change and that it is not Fiji’s doing.

Sayed-Khaiyum says ADB’s report is based on all these issues and National Federation Party Leader, Professor Biman Prasad, Economist, Dr. Wadan Narsey, lawyer, Richard Naidu and Unity Fiji Leader, Savenaca Narube have jumped on a bandwagon and are saying all figures are showing that Fiji’s economy is not doing well.

Meanwhile, Sayed-Khaiyum told Parliament that one of the fundamental reasons why agriculture has not reached large commercial proportions in this country is because the laws we previously had, allowed people to get lease term of 99 years for tourism, commercial, residential and industrial but not for agriculture.

He says leases for agriculture were given for 30 years for political reasons ans this is why no commercial bank would lend and use agriculture land as collateral.

Sayed-Khaiyum says this is why we do not have investment in the agriculture sector and FDB is left to pick up the pieces.

Sayed-Khaiyum also touched on non focused sectors which he says provides cross subsidization of interest rates where private companies pay up to 12 percent interest rate to FDB while farmers pay 3 or 4 percent interest rates.

He says this is how FDB funds itself with the government guarantee where they go out in the market and raise funds.

He says the opposition does not mention that FDB is not a commercial bank and does not accept deposits.