Fiji will not have to worry about finance in case of a major natural disaster as Japan has committed to provide a concessional loan of about $72 million should a disaster strike.
This comes as the Japanese and Fijian Governments have signed an exchange of notes and records of discussion for the Standby Loan for Disaster Recovery and Rehabilitation Phase 2.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says this loan will only be utilised if we are hit by a major natural disaster and the Cabinet has declared a State of Natural Disaster.
He says this is highly concessional financing with a repayment term of 40 years, including a 10-year grace period and an interest rate of 0.40 percent per annum.
Professor Prasad says apart from quick disbursement of funding and concessional terms, this facility also supports policy reform actions in three key areas including strengthening disaster risk governance to manage disaster risk, investing in disaster risk reduction for resilience, and understanding disaster risk and enhancing disaster preparedness for effective response.
He adds key Government agencies have worked in collaboration to successfully complete these policy reform measures.
Japanese Ambassador Rokuichiro Michii says this is the first of 5 signings of exchange of notes worth $133 million which includes the improvement of aviation facilities at Nadi International Airport, ice plants for the fisheries sector, development scholarship programs and the construction of Tamavua-i-Wai bridge.
