Interim Govt Turns to China for Loans

The interim government is now turning to China for loans.

It has revealed that the government will expeditiously pursue discussions with Chinese authorities to harness funding under the Chinese government's soft loan facility.

Cabinet based its decision on a submission by Interim Prime Minister Commodore Frank Bainimarama. Commodore Bainimarama explained that Chinese Premier Wen Jiabao during his visit to Fiji in April last year, announced that China has set aside $600M US to be extended to the Pacific Island countries in the form of soft loans for various types of projects.

He said such loans would be at very low interest rates at around 2 percent and terms of up to 20 years, with a grace period initially with possibilities that loans extended could later be turned into grants on application and on case by case basis.

Some of the priority sector projects for such funding will be upgrading of rural roads and maritime transportation, provision of low cost housing for squatters, fixing of water supply problems and construction of slipway and ship repair facilities. Other sectors will be considered based on the submissions from relevant ministries.

Commodore Bainimarama said the onus is now on Fiji, particularly the interim government to get projects identified and substantive proposals developed to seek funding under the $600M US Chinese soft loan facility.