To strengthen disaster governance, manage disaster risk and enhance disaster preparedness for effective response, the Fijian Government has received a $72 million standby loan from the Japanese government for disaster recovery and rehabilitation.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad highlighted this in Parliament after Assistant Minister for Immigration, Ratu Rakuita Vakalalabure asked if there is an update on the stand-by loan for disaster recovery and rehabilitation.
Professor Prasad says the loan has been on very favourable terms, with an interest rate of 0.4 percent per annum and a 40-year repayment period after a 10-year grace period.
He says the loan is contingent on the Fijian government meeting certain policy reform actions, including investing in disaster risk reduction for resilience and enhancing effective response.
He adds the loan can only be drawn down after the Fijian Cabinet declares a state of natural disaster and also on the advice of the National Disaster Management Council.
Professor Prasad says the Fijian government must also maintain sound macroeconomic and public financial management strategies.
He says the loan from the Japanese government is a critical part of Fiji's efforts to build resilience and recover from natural disasters, which the country is highly vulnerable to.
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