The iTaukei Land Trust Board (TLTB) is making significant strides towards establishing a development bank for resource owners within the next two years.
This announcement was made by TLTB chief executive officer Solomoni Nata at the Indigenous Resource Owners’ Forum held in Lami yesterday.
Mr. Nata revealed that TLTB collects around $120 million annually in lease monies (excluding fees), from which TLTB retains 10%, approximating $12 million each year. “We have now created a wealth fund called the iTaukei Wealth Fund, where this money is being pooled,” he said.
Additionally, he mentioned the establishment of the iTaukei Development Facility within TLTB, which will manage the wealth fund. “Eventually, we’ll merge these two to form the bank,” Nata stated.
While preparations for a formal banking entity are underway, the iTaukei Development Facility will start by providing loans to landowners. The first 10 recipients of these loans are to be announced today.
“We’re offering very low-interest rates of around 2.5%, with a repayment period of two to three years,” Nata said.
There is currently no loan ceiling, meaning landowners can secure loans ranging from $1,000 to $100,000 for various purposes, including property, investment, and the takeover of expired leases. One example he provided was a mataqali in Sawakasa funding $60,000 for a milking machine to manage their 100 cows.
“The key factor is a solid business plan. There must be a good business case, and we can use their lease monies as security in case of default,” he explained.
TLTB is collaborating with Merchant Finance, Fiji Development Bank, and other institutions for capacity building in the banking sector.
“We are constructing the necessary structure, which has already been approved by the board. We have a roadmap, and in about a year to two years, we’ll likely form a subsidiary company that will function as the bank, allowing us to focus on our core business,” Nata concluded.