FDB signs $7m loan guarantee agreement with ADF

The French Development Agency and the European Union are providing a $7 million loan guarantee to the Fiji Development Bank through the issuance of the EURIZ guarantee that will allow FDB to give loans to more micro, small, medium enterprises.

FDB says the ADF and FDB signed the ‘EURIZ loan portfolio guarantee’ agreement that offers a flexible, convenient and attractively priced risk-sharing mechanism to financial institutions to facilitate loan access for micro, small and medium enterprises with high development impacts.

The agreement will allow FDB to expand its MSME/SME financings where the target beneficiaries of this guarantee include MSMEs and SMEs with high developmental impact such as green SMEs, women, youth, health, education, agriculture, digital and social business.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says while FDB has the full support of the government, it is pleasing to see the bank engaging with international partners that would assist in reaching out to more people.

He says this historic ceremony is the testimony of the bank’s commitment to improving its services, creating easily-accessible financial solutions and collaborating with organizations that are on the same wavelength as FDB in terms of service delivery and innovative financial services.

Professor Prasad adds this collaboration will significantly add to FDB’s capacity to lend to MSMEs in Fiji.

FDB CEO Saud Minam says they are very excited about this initiative and are now looking at further expanding their lending facilities for agriculture, MSMEs and SMEs.

He says as part of this growth strategy, they will be focusing on climate-related projects and promoting gender equality within the business community.

Minam says they understand the importance of sustainable development and are committed to supporting businesses that prioritize these values.

He adds with this collaboration, they hope to empower even more entrepreneurs and create a stronger, environmentally conscious economy.

Philippe Orliange, Executive Director for Geographies at AFD who travelled from Paris to Suva to witness this signing says as public development banks, FDB and AFD have an important role to play in the fight against climate change: channelling public and private finance towards green investments to support mitigation and adaptation from the community level to the regional one.

He adds they are providing support to a fellow public development bank for them to have the means to exercise their public mandate to the benefit of the people of Fiji.