Parliament approves Government guarantee of $150 million for FDB loan

Parliament has approved that the Government guarantee for the Fiji Development Bank borrowings for the 12-month period from 1st March 2023 to 28th February 2024.

It also approves that the Government guarantee a sum of $150 million for the Guarantee Period; and that the Fiji Development Bank pay a guarantee fee of 0.075% on the cumulative utilised guarantee credit.

The motion was tabled by the Deputy Prime Minister and Minister for Finance Professor Biman Prasad, and had the full support of all Parliament members.

In his right of reply, Professor Prasad clarified that the Coalition Government is not going to make changes just for the sake of making changes.

He says they will take the contributions by FijiFirst MP Jone Usamate and Inia Seruiratu into consideration as there were a lot of questions about fit-for-purpose board members.

He says the Reserve Bank has a process where they do fit-for-purpose checks.

While responding to FijiFirst MP Faiyaz Koya about non-performing loans, Prof. Prasad says the debt comes to about $100 million and they are all pre-COVID.

He says if they look at the non-performing loan prior to 2020, the ratio was still high.

While speaking in support of the motion, Seruiratu says some of the issues are concerning the conduct of some of the executives and perhaps some of the elites, politicians and political parties.

He says they all know the history of FDB and therefore the Opposition is urging the Government to be vigilant and make sure there is highest levels of standards and professionalism.

While also speaking in support of the motion, FijiFirst MP Premila Kumar says they are the new Opposition and they will not come in the way of any policies or laws they are going to bring that will benefit the people.

She says they will ask for clarity, accountability and transparency.

Kumar further says FDB is the only development bank in Fiji that supports the farmers, the fishing and agriculture sector and above all, women entrepreneurs.

FijiFirst MP Jone Usamate also says he fully supports the motion, however, he has one concern regarding good governance and fit-for-purpose directors and management.