The iTaukei Land Trust Board (TLTB) is in the process of establishing a development bank for resource owners, aiming to have it operational within the next two years.
This announcement was made by TLTB chief executive officer Solomoni Nata during the Indigenous Resource Owners’ Forum held in Lami.
“We collect around $120 million annually in lease monies (excluding fees), and TLTB takes 10 percent, which amounts to about $12 million each year. We’ve now created a wealth fund called the iTaukei Wealth Fund, where we are pooling that money,” Nata explained.
He also mentioned the creation of the iTaukei Development Facility within TTLB, a unit established to manage the wealth fund. “At some point, we will merge these two to form the bank,” Nata said.
While the formal banking entity is still in its preliminary stages, the iTaukei Development Facility will start providing loans to landowners. The first 10 loan recipients will be announced today.
“We are offering very low-interest rates of around 2.5 percent with repayment terms of two to three years,” Nata stated.
There is currently no maximum limit on loans, meaning landowners can borrow amounts ranging from $1,000 to $100,000 for various initiatives such as property investment, taking over expired leases, or grazing.
“In Sawakasa, one mataqali used $60,000 to buy a milking machine because it is very difficult to milk 100 cows twice a day. Others have proposed gravel business ventures, such as quarrying,” Nata added. “The critical element is a solid business plan, which can use lease monies as security in case of default.”
TLTB is collaborating with Merchant Finance, Fiji Development Bank, and other entities for capacity building in the banking sector.
“We are building the structure, which has already been endorsed by the board. We have a roadmap, and by late next year or in two years’ time, we will probably form a subsidiary company that will function as the bank, allowing us to focus on our core business,” Nata concluded.