The Fiji Government and the Asian Development Bank today signed a US$70 million loan agreement to support Fiji in building resilience against disasters and help spur sustainable growth in the country.
During the signing, Deputy Prime Minister and Minister for Finance Professor Biman Prasad acknowledged ADB for co-leading the first joint budget support operation for the fiscal year 2023/2024 that involved other partners.
He says the Government over the past six fiscal years (2019-2024) had undertaken a comprehensive reform program with development partners to improve Fiji's governance and management of public finances, enhance the State Owned Enterprises and Government agencies, improve trade, public investments, fiscal sustainability and management, promote private sector-led growth and strengthen community and climate resilience.
Professor Prasad says the reforms are pegged to blended financing from development partners in the form of concessional loans and grants with over $2 billion received over the past six fiscal years.
He adds over the last six years including the current financial year, Fiji has received a total of US$500 million in direct budget support financing from the ADB and under various programs.
ABD Director General for the Pacific Leah Gutierrez says they are pleased to be able to support the Fiji Government’s ambitious reform agenda.
She says the program will enable Fiji to access highly concessional financing under ADB’s new lending terms for small island developing states.
Gutierrez says this will help reduce Fiji’s future debt service obligations and create more fiscal space for the government to finance development spending.
The Director General adds that this program reflects the close partnership between the Government of Fiji and its development partners to support new policies and regulations that strengthen climate adaptation and mitigation, reduce barriers to private sector growth and improve the transparency and quality of public financial management.
According to the Finance Ministry, the loan agreement is a concessional loan of 40 years, with a 10-year grace period and a 1 percent interest rate.
