Fiji Airways, the national airline of Fiji, is currently in the process of repaying a $75 million loan from the Fiji Development Bank (FDB), which was part of a larger $455 million government-backed financial package during the COVID-19 pandemic. This information was presented by FDB’s acting chief executive officer, Titilia Kamil, during a recent session with the Parliamentary Standing Committee on Economic Affairs.
While answering queries from MP Premila Kumar, Kamil confirmed that although the loan remains unpaid in full, Fiji Airways has begun making repayments that include both principal and interest. She added that the airline has consistently submitted its audited reports on time, indicating a commitment to financial compliance.
The loan originated as a part of a series of financial aids extended to the airline, aimed at ensuring its survival through the challenging times brought on by the pandemic. The maximum repayment term for these loans is set at 15 years, as stated by former attorney-general Aiyaz Sayed-Khaiyum. He clarified that these funds were not direct government loans but were sourced from various financial institutions, including the Fiji National Provident Fund (FNPF), the Asian Development Bank (ADB), German banks, and leasing companies.
In total, Fiji Airways has received significant support during its recovery phase, with loans distributed among different financial entities: $229 million from FNPF, $134 million from ADB, $75 million from FDB, $278 million from German banks, and $47 million from lessor companies.
It’s promising to see that Fiji Airways has initiated the repayment process, which reflects responsible financial management and a commitment to recovery while navigating the challenges posed by the pandemic. As the airline continues to honor its obligations, it may help rebuild trust with financial partners and pave the way for future stability and growth.
Summary: Fiji Airways has started the repayment of a $75 million loan from the Fiji Development Bank, which was part of a larger $455 million financial support package during the COVID-19 pandemic. While the loan has not been fully repaid yet, the airline is on track, demonstrating their commitment to financial responsibility and recovery.
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