Deputy Prime Minister and Finance Minister, Professor Biman Prasad, signed an Exchange of Notes with the Government of Japan today, securing a second standby disaster loan financing of approximately FJD$72 million. This funding is intended to support future disaster recovery and rehabilitation efforts.
The agreement features highly concessional financing terms, including a 40-year repayment period with a 10-year grace period and an interest rate of 0.40% per annum. Access to the funds will be granted following a ‘Declaration of Natural Disaster’ issued by the Cabinet based on recommendations from the National Disaster Management Council.
Professor Prasad highlighted Japan’s longstanding support for Fiji’s development goals, which include contributions to infrastructure projects, social sectors such as education and health, disaster response, and resilience building. He also noted the recent mobilization of Japanese private sector investment, with a 44% equity stake in Energy Fiji Limited.
Furthermore, he acknowledged Japan’s assistance during crises like the COVID-19 pandemic and natural disasters, where direct financial and technical support was provided through the Japan International Cooperation Agency (JICA) and the Japanese Government, along with indirect support via the Asian Development Bank.
Prasad emphasized the necessity for Fiji to remain prepared, given the country’s vulnerability to frequent natural disasters and the adverse impacts of climate change.