About $93.3 million in loans to 4,185 businesses under the Government Guarantee and Interest Subsidy Scheme boosts economic recovery

While credit conditions remain soft, the injection of approximately $300 million through the various Reserve Bank of Fiji Facilities, including approximately $93.3 million in loans to 4,185 businesses under the Government Guarantee and Interest Subsidy Scheme, where borrowers do not pay interest or fees for the first two years, have also boosted economic recovery.

Reserve Bank of Fiji Governor, Ariff Ali says for the financial sector, ample liquidity in the banking system amounting to $1.554 billion along with the Reserve Bank’s easing measures, have helped keep borrowing rates low and provided support to the economy.

Ali says lending rates and the cost of funds have generally fallen over the year, with financial institutions continuing to provide a moratorium to selected customers during this difficult time.

The Governor says the non-performing loans ratio remains elevated, although buffered by adequate provisioning and a well-capitalised banking system.

The Reserve Bank of Fiji Board has also maintained the Overnight Policy Rate at 0.25 percent following its monthly meeting today.