The Governments of Japan and Fiji will exchange diplomatic notes to formalise the “Stand-by Loan for Disaster Recovery and Rehabilitation” worth up to US$50 million.
The Stand-by Loan is rapidly deployable funding of up to 50 million US Dollars at the onset of natural disaster, made available at an extremely concessional rate of 0.01% interest with a 40-year tenure, and a ten-year grace period.
This stand-by loan was introduced to promptly meet financial needs during the recovery and reconstruction period after disasters.
Since the loan agreement will be signed prior to a disaster, Fiji will be able to access the funds without delay during a national emergency.
This stand-by loan will support the disaster risk reduction policy actions of Fiji and respond to the temporary financial needs in the event of a major disaster.
It can also help improve disaster risk management capabilities and provide prompt support for recovery and reconstruction.
Ambassador of Japan, Masahiro Omura and Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum will officiate at an Exchange of Notes signing ceremony this Friday.
