Fiji Airways, the national airline of Fiji, has commenced repayments on a $75 million loan taken from the Fiji Development Bank (FDB) as part of pandemic relief efforts. This confirmation was made by FDB’s acting CEO, Titilia Kamil, during a presentation of the financial reports for 2022 and 2023 before the Parliamentary Standing Committee on Economic Affairs.
Kamil elaborated that Fiji Airways has started making payments that cover both the principal and interest of the loan. The assistance was part of a broader governmental strategy to support the airline during the downturn caused by COVID-19. While the airline had been managing its compliance by submitting audited reports punctually, the repayment process has now officially begun.
In a related context, it was noted that the airline had previously received a substantial government-backed loan amounting to $455 million in 2020. The $75 million owed to the FDB is part of that larger financial package. Former attorney-general Aiyaz Sayed-Khaiyum revealed that the repayment terms for these loans extend up to 15 years, and these funds were sourced not solely from the government but also from multiple financial institutions including the Fiji National Provident Fund, the Asian Development Bank, and several international banks.
The commencement of repayments by Fiji Airways indicates a positive step towards financial recovery, showing that the airline is actively working to honor its commitments. This development may inspire confidence in stakeholders and potential investors about the airline’s long-term viability and recovery trajectory.
It is encouraging to see Fiji Airways take the necessary steps to manage its debts responsibly, a crucial move particularly as the aviation industry continues to rebound from the effects of the pandemic.
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