Borrowing because it is cheap is an amateurish tactic - Narube
It is tragic that Fiji is now relegated to low income or poor – Unity Fiji

Borrowing because it is cheap is an amateurish tactic - Narube

It is tragic that Fiji is now relegated to low income or poor – Unity Fiji

By Vijay Narayan
Tuesday 19/07/2022
Leader of Unity Fiji and former Governor of the Reserve Bank of Fiji, Savenaca Narube

Borrowing because it is cheap is an amateurish tactic that is inappropriate and downright dangerous for Fiji according to the the Leader of Unity Fiji and former Governor of the Reserve Bank of Fiji, Savenaca Narube.

While commenting on the 2022/2023 National Budget, Narube says in the past, Fiji was not eligible for these concessional loans from the ADB and the World Bank because of our "middle income" country classification.

Narube says these terms were only accessible by countries who were rated as low income or poor.

He says tragically, Fiji is now relegated to this low classification.

The former RBF Governor says the Minister for Economy boasted about the low interest rates that he had secured on these loans.

He says this is nothing to boast about, instead, we should be extremely worried that we are going backwards.

Narube says in fact, Fiji is sliding backwards very fast in all international ratings.

The Unity Fiji Leader says with the large debt that Fiji now carries, Aiyaz Sayed-Khaiyum must focus on expenditure reforms that would lift the quality of spending.

He says instead, we hear the irrelevant political rhetoric by the Minister saying that he was borrowing another half a billion dollars on very concessionary terms when debt was already close to 90 percent of GDP claiming that it was like paying back only 60 percent of the loan.

Narube says this is childish and dangerous financial logic.

The Unity Fiji Leader says debt is debt.

He says it will have to be repaid sometime, if not now, definitely in 10 years' time.

Narube also says the Minister's complicated present value calculation is misplaced.

The former RBF Governor says what Sayed-Khaiyum should be doing is cleaning up his expenses which will raise the impact of spending on the economy, create jobs and improve our ability to repay debt.

He adds the consistent deterioration in our global positions confirm to the people that Fiji is in a financial and economic distress, and the sooner the Minister for the Economy concedes that, the better is our chance to find solutions and turn these around.


2022-2023 Budget Coverage




Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
IN DEPTH
All Blacks 7s claim both Sydney 7s men’s and women’s titles
Serious questions are being asked after yet another dismal performance by the Fiji Airways men’s 7s team in the HSBC World 7s Series.
5 days ago

Womens Rugby World Cup 2022
Quarter-final qualification is now the goal for the Rooster Chicken Fijiana 15’s following their 21-17 victory against South Africa.
110 days ago

Queen Elizabeth II passes away
Queen Elizabeth II, the UK's longest-serving monarch, has died aged 96, after reigning for 70 years.
140 days ago
FEATURE NEWS
Riyaz Sayed-Khaiyum had a total package for the year of $387,790.08 and received $32,315.84 per month - Amrit
Fijian Broadcasting Corporation Chair, Ajay Bhai Amrit stresses the former CEO, Riyaz Sayed-Khaiyum had a total package for the year of $387,790.08 an...
10 hours ago
LATEST NEWS
Grammy Awards 2023: Beyoncé becomes the biggest winner in history
Beyoncé has broken the record for the most Grammy Award wins of all time, after collecting her 32nd trophy at this year's ceremony. The singer ...
10 hours ago

Millions of tonnes of waste dumped at Naboro Landfill since its inception in August 2005
The Naboro Landfill has received 1,295,651 tonnes of waste since its inception in August 2005 to December last year, and the tonnage of waste landing ...
10 hours ago

CWM Board of Visitors confirms clean up day on Feb 25th
Colonial War Memorial Hospital, Board of Visitors Chair, Dr Esther Williams has stated they are having a Clean Up Day on Saturday, February ...
10 hours ago

Beyoncé leads nominations for Grammys and might break record for most wins
Beyoncé is the top nominee for the 65th annual Grammy Awards, with all but one of her nine nods coming for her dance-heavy album ...
14 hours ago

Prof.Prasad having several high-level bilateral engagements with Indian Government Ministers
Fiji's discussions in India will be focused on advancing India-Fiji economic relations and bilateral cooperation in areas of mutual strategic ...
14 hours ago

TOP