The Fijian government will provide a guarantee for domestic borrowing up to $200 million for the Fiji Sugar Corporation (FSC) until 2028, pending Parliament approval. This decision was approved by the Cabinet, which also stated that an additional $95 million would be made available to the company under this guarantee.
The guarantee will be in effect from August 1, 2022, until May 31, 2028. According to a Cabinet statement, the government has consistently guaranteed FSC’s domestic and offshore borrowings, with the latest domestic guarantee receiving Parliamentary approval on July 28, 2022. The existing guarantee limit was subsequently increased by $20 million to a total of $95 million on May 23, 2024.
Cabinet explained that this additional guarantee for domestic borrowing would enable FSC to secure significantly cheaper local financing, which is expected to alleviate financial pressures and positively impact the domestic economy.