The government has officially entered into an Exchange of Notes with Japan for a second standby disaster loan, amounting to approximately FJD$72 million. This funding will be utilized for future disaster recovery and rehabilitation efforts.
Deputy Prime Minister and Finance Minister, Professor Biman Prasad, acknowledged Japan’s significant support for Fiji’s developmental goals over the years. He emphasized Japan’s contributions towards infrastructure projects and social sectors such as education and health. Additionally, he noted collaboration in disaster response and resilience, along with the recent investment of 44 percent equity in Energy Fiji Limited by the Japanese private sector.
The loan comes with favorable terms, including a repayment period of 40 years which features a 10-year grace period, and an annual interest rate of 0.40%.
Prasad remarked on Japan’s unwavering support during crises, citing assistance during the COVID pandemic and natural disasters, both through direct financial aid and technical support via JICA and the Japanese Government, as well as indirect support from the Asian Development Bank.
The Deputy Prime Minister stressed the importance of being prepared, given that the country is susceptible to frequent natural disasters and the effects of climate change.
Japanese Ambassador to Fiji, Rokuichiro Michii, reaffirmed Japan’s commitment to aiding Fiji’s disaster resilience and recovery strategies. This standby loan facility will address the financial needs that arise during the recovery phase after natural disasters.