The Cabinet of Fiji has recently approved a Government guarantee to support borrowings by the Fiji Development Bank (FDB) for a one-year period, specifically from March 1, 2026, to February 28, 2027. This decision is expected to enhance the bank’s ability to raise funds through various financial instruments, which include both short- and long-term bonds, promissory notes, term deposits, and financing facilities from the Reserve Bank of Fiji, such as those geared towards housing.
As part of the initiative, the government has raised the guarantee limit from $190 million to $220 million, thereby bolstering the bank’s capacity to support its lending programs. This guarantee will be presented to Parliament in accordance with legislative procedures.
The rationale behind this financial support is to ensure that the Fiji Development Bank can continue fulfilling its vital role in promoting national development objectives, particularly in crucial sectors such as housing, the growth of small and medium-sized enterprises, and enhancing overall economic resilience.
This commitment from the government signifies a proactive approach towards fostering economic stability and encouraging growth in essential areas that will benefit the citizens of Fiji.
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