AG tables RBF Act 1983 to extend the period for advances from 183 days to 5 years

Attorney General Aiyaz Sayed-Khaiyum has tabled a Bill to amend the Reserve Bank of Fiji Act 1983 which seeks to extend the period for advances from 183 days to 5 years.

While tabling the Bill, Sayed-Khaiyum says the restriction on advances for 183 days creates uncertainty on credit accessibility and banks and other credit institutions may find it risky and administratively cumbersome to access funds under this arrangement.

He says the restrictive loan term defeats the primary purpose of providing special incentives to the targeted sectors.

Sayed-Khaiyum says given the expansion of the Disaster Rehabilitation and Containment Facility to cover lending to micro, small and medium enterprises and to encourage more uptake on the scheme, extending the maturity of these loans over the 6-month limit up to 5 years will help businesses stabilise and recover before making arrangements for repayment.

He says the RBF operates a number of concessional funding facilities such as the Import Substitution and Export Finance Facility, the Disaster Rehabilitation and Containment Facility and the Housing Facility for first home buyers. Funds are provided for an initial term of 6 months and rolled over for periods of up to 5 years.

The Reserve Bank of Fiji (Budget Amendment) Bill 2021 seeking to amend the Act to extend the period for advances from 183 days to 5 years, has been passed in parliament.