The government has officially signed an Exchange of Notes with the Japanese government for a second standby disaster loan of approximately FJD$72.0 million. This funding is intended to assist with future disaster recovery and rehabilitation needs.
Deputy Prime Minister and Finance Minister, Professor Biman Prasad, acknowledged Japan’s significant support for Fiji’s development goals. He noted that Japan’s assistance has encompassed various areas, including infrastructure development, social sectors like education and health, disaster response initiatives, and recently, facilitating Japanese private sector investment with a 44 percent equity stake in Energy Fiji Limited.
The financing agreement is highly concessional, featuring a repayment period of 40 years, a 10-year grace period, and an annual interest rate of 0.40 percent.
Prasad emphasized that during crises, such as the COVID-19 pandemic and natural disasters, Japan has consistently provided support to Fiji through direct financial and technical assistance via JICA and the Japanese Government, as well as indirectly through the Asian Development Bank, which Japan significantly funds.
The Deputy Prime Minister also highlighted the importance of being prepared, given Fiji’s vulnerability to frequent natural disasters and the impacts of climate change.
Japanese Ambassador to Fiji, Rokuichiro Michii, reaffirmed Japan’s commitment to aiding Fiji’s disaster resilience and recovery efforts. The standby loan facility is specifically aimed at addressing the country’s financial requirements during the rehabilitation phases following natural disasters.