Parliament passes motion to guarantee $190M loan for FDB

Parliament has unanimously passed a motion that the government guarantee a $190 million loan by the Fiji Development Bank for 12 months period from 1st March this year to 28th February next year, and the bank pays a guarantee fee of 0.075 percent on the cumulative utilized guarantee.

While tabling the motion in Parliament this afternoon, Deputy Prime Minister and Minister for Finance Professor Biman Prasad says the FDB is a very important institution that was set up in 1966 to facilitate and stimulate the promotion and development of natural resources, transportation and other industries and enterprises in Fiji.

He says the banks shall give consideration and priority to the economic development of the rural and agricultural sectors of the economy of Fiji.

Professor Prasad says the 2025 Government guarantee request from the bank is to continue the facilitation of government policy by lending to essential sectors of the economy, particularly resource base sectors, including agriculture, mining, quarrying, manufacturing, transport, communications, MSME, in wholesale, retails and hotels, sustainable energy from fossil fuels to renewable resources and professional business which will assist the disadvantaged of the community to earn a decent living.

He says it also provides the bank support so that it can lend to the resource-base sector, which will assist in the development of the agriculture sector.

He adds it will also continue to provide finance and support the growth of small and medium enterprises, and improve people's social and economic well-being by assisting them with their needs and making the correct economic investments.

While supporting the motion, Deputy Prime Minister and Minister for Trade and Cooperatives Manoa Kamikamica says if people look back at the history of the Fiji Development Bank, it has always been a vehicle of tremendous importance to the Fijian economy.

He says FDB has demonstrated over the years its ability to execute well and drive benefits to the people of Fiji, and the FDB has proved fruitful to the small, micro, and medium enterprises.

Leader of Opposition Inia Seruiratu says it is pleasing to hear that FDB’s past performance has been healthy, and having served as the Commissioner Northern, he saw the benefits, particularly for MSMEs.

He also urged the Office of National Planning or Strategic Planning to closely monitor this and play a more active role in ensuring that this comes into effect and serves the very purposes that it was designed for.