The government will secure domestic borrowings for the Fiji Sugar Corporation (FSC) up to $200 million through 2028, pending parliamentary approval. Recently, the Cabinet approved an additional $95 million under this guarantee.
This guarantee is set to be effective from August 1, 2022, until May 31, 2028. The Cabinet statement noted that the government has consistently provided guarantees for FSC’s domestic and offshore borrowings, with the most recent domestic guarantee gaining parliamentary approval on July 28, 2022.
On May 23, 2024, the limit for this guarantee was raised by $20 million to reach the current $95 million. The Cabinet explained that this additional guarantee would enable FSC to secure significantly lower local financing costs, thus easing financial pressures and positively impacting the domestic economy.