Fiji Airways is in the early stages of repaying a $75 million loan it received from the Fiji Development Bank (FDB) as part of a rescue effort during the COVID-19 pandemic. Recently, Titilia Kamil, the acting chief executive officer of FDB, provided an update on the airline’s financial status during a presentation of the 2022 and 2023 financial reports to the Parliamentary Standing Committee on Economic Affairs.
Kamil clarified that while Fiji Airways has not fully paid off the loan, they have begun making repayments that include both principal and interest. The airline’s commitment to compliance has been consistent, as they have submitted their audited reports on time. The repayments are facilitated by assistance from the Reserve Bank of Fiji (RBF).
In a broader context, the national airline was granted a total government-guaranteed loan of $455 million during the pandemic. The $75 million owed to FDB was part of this larger loan package, which included funding from multiple financial institutions, such as the Fiji National Provident Fund (FNPF), the Asian Development Bank (ADB), and various German banks.
Aiyaz Sayed-Khaiyum, a former attorney-general, pointed out that the maximum term for the loan repayment is 15 years. The substantial support from these financial entities highlights a collective effort to ensure that Fiji Airways can remain operational during challenging times.
This early repayment phase marks a positive step for Fiji Airways, signaling the airline’s recovery journey in the wake of the pandemic’s impact on global travel. With continued commitment and support, there is hope for the airline’s long-term financial stability and growth in the future.
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