The Asian Development Bank (ADB) and the Fijian Government have finalized a $70 million loan agreement to enhance Fiji’s disaster resilience and support sustainable growth.
Finance Minister Professor Biman Prasad and ADB’s Pacific director general, Leah Gutierrez, signed the agreement during the Forum Economic Ministers meeting in Suva yesterday.
Professor Prasad noted this is the first joint budget support operation for the fiscal year 2023-2024, involving contributions from other development partners.
“Over the past six fiscal years (2019-2024), the Fiji Government, in collaboration with development partners, has implemented comprehensive reforms to improve governance and public financial management. These reforms include enhancing the policy, legal, and institutional framework for State-owned enterprises and government agencies, improving trade, public investments, and fiscal sustainability, promoting private sector-led growth, and strengthening community and climate resilience,” said Prof Prasad.
These reforms have been supported by blended financing from development partners, totaling over $2 billion in the past six years, consisting of concessional loans and grants.
For the 2024 budget support programs, the development partners include the World Bank, ADB, and the governments of Australia and New Zealand, as well as the European Union.
“This collaboration has enabled the Fiji Government to secure a total budget support funding of nearly $542 million, made up of concessional loans and grants,” Prof Prasad stated.
Ms. Gutierrez expressed ADB’s satisfaction in supporting Fiji’s reform initiatives. “The program will provide Fiji with highly concessional financing under ADB’s new lending terms for small island developing states, which will help reduce future debt service obligations and create more fiscal space for development spending,” she said.
She further noted that the program reflects the strong partnership between Fiji and its development partners, aimed at supporting new policies and regulations that enhance climate adaptation and mitigation, reduce barriers to private sector growth, and improve transparency and public financial management quality.