Fiji Airways has recently initiated the repayment process for its $75 million loan from the Fiji Development Bank (FDB) that was extended to support the airline during the COVID-19 pandemic. Titilia Kamil, the acting CEO of FDB, disclosed this information while presenting the financial reports for 2022 and 2023 to the Parliamentary Standing Committee on Economic Affairs.
Kamil confirmed that the airline has commenced its repayments, which include both principal and interest amounts. She emphasized the government’s efforts to provide assistance to Fiji Airways during the challenging period and noted that the airline has consistently submitted its audited reports on time.
In 2020, as part of a larger government-backed financial strategy to stabilize the aviation sector, Fiji Airways received a total of $455 million in loans from various financial institutions, including the Fiji National Provident Fund, the Asian Development Bank, German banks, and lessor companies. The FDB loan of $75 million is a portion of this overarching support amount.
The maximum duration for repayment of these loans is set at 15 years, according to former attorney-general Aiyaz Sayed-Khaiyum. The financial strategy aims not only to assist Fiji Airways but to bolster the broader economic recovery following the impacts of the pandemic.
This development signals a positive step towards financial recovery for Fiji Airways, reflecting the airline’s commitment to fulfilling its obligations and stabilizing its operations post-pandemic. The early stages of repayment may also indicate improved revenue generation for the airline, potentially leading to further growth and investment in the future.
In summary, Fiji Airways has begun the process of repaying a $75 million loan from the Fiji Development Bank, part of a broader financial strategy to support the airline during the COVID-19 pandemic, and aims to ensure long-term stability and recovery.
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