The Cabinet has approved a proposal to raise the government guarantee limit for the Fiji Sugar Corporation’s domestic borrowings from $95 million to $200 million. This guarantee will cover the period from August 1, 2022, to May 31, 2028, and will be presented in Parliament for consideration.
Previously, the government had provided guarantees for both domestic and offshore borrowings of the Fiji Sugar Corporation, with the last guarantee approved by Parliament on July 28, 2022, which amounted to $75 million for the same period. This limit was subsequently raised by $20 million to $95 million on May 23, 2024.
The increase in the domestic borrowing guarantee is expected to enable the Fiji Sugar Corporation to secure more affordable local financing, alleviating financial pressures and fostering a positive impact on the domestic economy.