The Cabinet has approved an increase in the Government guarantee limit for the Fiji Sugar Corporation’s (FSC) domestic borrowings, raising it from $95 million to $200 million for the period from August 1, 2022, to May 31, 2028. This proposal will be presented in Parliament.
The Government has previously guaranteed FSC’s domestic and offshore borrowings, with the latest domestic guarantee being approved by Parliament on July 28, 2022, which covered $75 million for the same period. This limit was later raised by $20 million to $95 million on May 23, 2024.
The increase in the borrowing guarantee will enable FSC to secure cheaper local financing, helping to alleviate financial pressures and positively impacting the domestic economy.