The Housing Authority of Fiji has borrowed up to $148 million from 2018 to June 2024 to develop land and residential lots in the Central, Western, and Northern divisions.
In 2018, the authority was granted a guarantee cover of $150 million for a five-year period from 2019-2024. Of this, $148 million was utilized for land acquisition, developing land into residential lots, mortgage lending for new housing construction, upgrading renovations, and financing property purchases.
Deputy Prime Minister and Finance Minister Prof Biman Prasad stated that the authority plans to use the $150 million guarantee to deliver 3,183 lots during the 2024-2028 period, with the total development cost estimated at $229.08 million.
“The guarantee will also enable the authority to access the Reserve Bank of Fiji’s Housing Facility, maintaining the current portfolio of $71.13 million, assisting about 525 customers,” Prof Prasad informed Parliament last week. “Additionally, $9.82 million has been approved, assisting 184 customers.”
“The $150 million guarantee credit will support the Housing Authority’s policy agenda and ensure they continue to provide affordable lots and houses to those in need.”
Parliament approved the renewal of the Government guarantee of $150 million for the authority’s borrowing for another five-year period (July 1, 2024 – June 30, 2029) and to pay a guarantee fee of 0.5 percent on the cumulative utilized guarantee credit.
As of April 30, this year, the Government Guarantee Debt total stood at $1.02 billion (7.7 percent of GDP). Accessing the guarantee will increase the total Government guarantee exposure to $1.2 billion (8.9 percent of GDP).
From 2005 to 2024, 2,661 lots were delivered for Waila 3B, Wainibuku, Tacirua, Mokosoi, Field 40 in Lautoka, Namosau in Ba, and Matavolivoli and Tovata.