Japan to provide $200 million loan to Fiji

The Japanese government will provide a $200 million emergency loan to Fiji for COVID-19 response.

The emergency loan support will enable the government implement its planned activities for the 2020-2021 financial year and direct resources for COVID-19 response such as strengthening health and medical services.

The loan will be provided with extremely concessional conditions with 0.01% interest rate and 15 years of repayment period with 4 years grace period.

This marks Japan’s largest single economic development contribution to Fiji through the history of the bilateral relationship between Fiji and Japan.

Meanwhile, Minister for Economy, Aiyaz Sayed-Khaiyum had told parliament that total government debt is projected to increase to $8.3 billion by July this year and the total gross borrowing for the 2020/2021 financial year is $2.75 billion.

Sayed-Khaiyum had revealed that $1.4 billion is to be sourced externally, $940 million to be borrowed from the domestic market and the government is also utilising $400 million cash balance carried over which was accumulated from the refinancing of the global bond.

He said a total of $530 million in overseas loans has been taken from the ADB and Asian Infrastructure and Investment Bank in the first 6 months of the current financial year.

Sayed-Khaiyum added currently $710 million in external financing is being finalised by the World Bank, ADB and JICA. He says the draw down of these funds is likely in the coming months.

The Minister for Economy says the government has already raised $193.8 million from the domestic market for the first six months of the financial year.