The Cabinet has approved an increase in the Government’s guarantee limit for the Fiji Sugar Corporation’s domestic borrowings, raising it from $95 million to $200 million for the period from August 1, 2022, to May 31, 2028. This updated guarantee will be presented in Parliament for approval.
The Government has been backing FSC’s domestic and offshore borrowings, with the latest domestic guarantee authorized by Parliament on July 28, 2022, which initially covered $75 million for the same timeframe. This limit was later raised by $20 million to reach $95 million on May 23, 2024.
The increase in the domestic borrowing guarantee will enable FSC to obtain cheaper local financing, thus alleviating financial pressures and positively impacting the local economy.