The Cabinet has approved an increase in the Government’s guarantee limit for the Fiji Sugar Corporation’s (FSC) domestic borrowings from $95 million to $200 million for the period between August 1, 2022, and May 31, 2028. This adjustment, amounting to an additional $105 million, will be presented in Parliament.
The Government has previously provided guarantees for FSC’s domestic and offshore borrowings, with the most recent guarantee approved by Parliament on July 28, 2022, which covered $75 million for the same period. This limit was subsequently raised by $20 million to $95 million on May 23, 2024.
The new guarantee will enable FSC to secure significantly cheaper local financing, alleviating financial pressure and positively impacting the domestic economy.