Parliament has unanimously approved the Government’s motion to issue a $190 million guarantee for the Fiji Development Bank (FDB) for the fiscal year from March 1, 2025, to February 28, 2026. This guarantee marks an increase from the previous $130 million, reflecting a strong commitment to bolstering the bank’s operations and enhancing its financial instruments available for borrowing, including short and long-term bonds and promissory notes.
Deputy Prime Minister and Finance Minister Professor Biman Prasad outlined several purposes for this guarantee. It aims to support government policies by ensuring financing remains available to essential sectors such as agriculture, mining, manufacturing, transportation, micro, small, and medium enterprises (MSMEs), and sustainable energy solutions. The initiative seeks to uplift disadvantaged communities, enabling greater access to financial resources.
Prasad emphasized that the FDB’s role is critical for the nation’s development, particularly under the National Development Plan 2025-2029 and the overarching Vision 2050. By securing this government guarantee, the perceived risks associated with the bank’s borrowing will decrease, thereby making its financial offerings more attractive to investors and reducing overall borrowing costs.
The motion also illustrates the government’s proactive approach in nurturing the economy, particularly in rural and agricultural sectors, with a focus on enhancing digital capabilities at FDB. By tailoring financial solutions to rural areas, the bank aims to provide targeted support for local agricultural and fisheries developments that can enhance overall community livelihoods.
Additionally, the government’s ongoing commitment to financial guarantees is not new; it has consistently aimed to ensure the financial stability of state-owned enterprises, thus creating a nurturing environment for business growth. This recent motion serves as a testament to the government’s dedication to the economic recovery and resilience of Fiji, instilling confidence in future investments and developments.
Overall, this measure not only enhances the capacity of the Fiji Development Bank to drive economic growth but also signals positive prospects for the local economy and the well-being of Fiji’s citizens.
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