The Fiji Development Bank (FDB) has begun activating parts of its business continuity plan to help clients weather a sharp rise in fuel costs driven by global instability linked to the Middle East conflict, the bank’s chief executive said on Monday. Filimone Waqabaca told media the lender has already started internal assessments and is reaching out to businesses likely to be hardest hit as fuel prices surge about 35 percent.
Waqabaca said the bank’s immediate focus is on transport and service-delivery operators — with bus companies singled out — because higher fuel prices risk eroding margins and could force reductions in routes or frequency, particularly in regional areas. “Our concern is our clients and we’ve reached out to clients that may be impacted immediately due to the 35 per cent increase in fuel costs, such as the bus operators,” he said, warning that operators unable to absorb the added costs could see services dampened.
As part of the preparatory work, FDB has opened discussions with affected customers to consider short-term relief measures. Options under consideration include restructuring existing loans and granting temporary repayment holidays to provide a buffer while businesses adjust to the sudden cost shock. Waqabaca described these steps as targeted interventions negotiated with individual clients to maintain operations during a period of global uncertainty.
The bank’s move comes amid broader concerns that global supply and price shocks can quickly translate into domestic service disruptions in Fiji, where road transport remains a backbone of intercity and regional connectivity. Waqabaca stressed that maintaining service delivery was a priority for the bank’s contingency planning, noting that interruptions would have knock-on effects for communities that depend on buses and other transport providers for access to work, education and health services.
FDB’s outreach marks the latest instance of a development lender shifting from routine financing toward crisis-response support as external factors squeeze borrowing clients. While the bank has not disclosed the scale of potential relief measures or the number of clients already engaged, Waqabaca said the assessments are ongoing and would be scaled according to need and the evolving economic picture.
Businesses affected by the price rise have been urged to contact FDB for consultations. The bank’s approach, according to Waqabaca, will balance short-term relief with the need to preserve long-term credit viability, tailoring solutions such as loan amendments or repayment pauses to each client’s circumstances.
With the international situation still unsettled, FDB said it will continue to monitor fuel markets and the domestic economic impact, adjusting support as required. The bank’s actions aim to cushion immediate financial strain on critical service providers and to reduce the risk of wider disruptions in Fiji’s transport and service networks.
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