Deputy Prime Minister and Finance Minister Professor Biman Prasad has finalized an Exchange of Notes with the Government of Japan to secure a second standby disaster loan worth approximately FJD$72 million. This funding is intended to support future disaster recovery and rehabilitation efforts.
The loan features highly favorable terms, including a repayment period of 40 years, a 10-year grace period, and a low interest rate of 0.40% per annum. The funds will become available once the Cabinet declares a ‘Natural Disaster’ based on the recommendations from the National Disaster Management Council.
Professor Prasad acknowledged Japan’s significant contributions to Fiji’s development over the years, which include investments in infrastructure and support in crucial sectors like education and health. He highlighted Japan’s role in disaster response and resilience-building, as well as recent efforts to mobilize Japanese private sector investment in Energy Fiji Limited, where Japan holds a 44% equity stake.
He noted that during challenging times, such as the COVID-19 pandemic and other natural disasters, Japan has consistently provided direct financial and technical support through the Japan International Cooperation Agency (JICA) and also through the Asian Development Bank, of which Japan is a major shareholder.
Professor Prasad emphasized the importance of being prepared, as Fiji is particularly susceptible to frequent natural disasters and the impacts of climate change.