Net Government debt is expected to be stable as the Government begins to consolidate its fiscal position which is why Standard and Poor’s Global Ratings has recently upgraded Fiji’s Credit rating from B+ to BB–.
This was revealed by Attorney General Aiyaz Sayed‑Khaiyum in reply to Assistant Minister for Women, Veena Bhatnagar as she asked the Attorney General to provide reasons behind Fiji’s upgrading.
Sayed‑Khaiyum states another reason is Standard and Poor’s Global Ratings have greater confidence in policy continuity in Fiji following the elections of November 2018.
He adds according to Standard and Poor’s Global Ratings the Fijian economy is entering it’s tenth consecutive year of economic growth despite severe damage inflicted by Tropical Cyclone Winston in 2016.
He further states the fourth reason is Standard and Poor’s Global Ratings believe the Reserve Bank of Fiji has generally demonstrated operational independence during the past decade.
Sayed‑Khaiyum also told SODELPA MP Viliame Gavoka that he can bring to the attention of Parliament those companies who feel they are being unfairly treated when applying for loans.
Sayed‑Khaiyum made this comment in reply to Gavoka raising the question on why companies in Fiji are having problems raising loans with banks, adding that the government will look into it.
He further states that he cannot comment on which companies Gavoka is referring to but liquidity at the moment is $600 million so there should not be any problems accessing loans.
The Attorney General says the interest rates in Fiji have also stabilised.
Sayed‑Khaiyum adds loan applications depend on individual companies cash flow and balance sheet among other things and the banks assess this on an individual basis.
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