The government will provide a guarantee for domestic borrowings of up to $200 million for the Fiji Sugar Corporation until 2028, pending Parliament’s approval. The Cabinet has recently sanctioned an additional $95 million guarantee for the corporation. This guarantee will be effective from August 1, 2022, until May 31, 2028.
The Cabinet indicated that the government has been overseeing FSC’s domestic and offshore borrowings, with the latest domestic guarantee receiving Parliamentary approval on July 28, 2022. Subsequently, on May 23, 2024, this guarantee limit was raised by $20 million to the current $95 million.
According to the Cabinet, this additional guarantee for domestic borrowing will enable FSC to obtain local financing at significantly lower rates. This move is expected to alleviate financial pressures on the corporation and positively impact the domestic economy.