Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has signed an Exchange of Notes with the Government of Japan for a second stand-by disaster loan financing amounting to approximately FJD $72 million. This financial assistance is intended to support future disaster recovery and rehabilitation efforts.
The highly concessional loan comes with a repayment term of 40 years, which includes a 10-year grace period and an interest rate of just 0.40% per annum. Access to this financing will be available upon the declaration of a ‘Natural Disaster’ by the Cabinet, following advice from the National Disaster Management Council.
Professor Prasad acknowledged Japan’s substantial contributions to Fiji’s development, highlighting investments in infrastructure, support in education and health sectors, and collaboration in disaster response and resilience initiatives. He pointed out that Japan has been instrumental during crises, such as the COVID pandemic and various natural disasters, providing direct financial and technical support through the Japan International Cooperation Agency (JICA) and the Japanese Government, as well as indirectly through the Asian Development Bank.
The minister emphasized the importance of preparedness for a country that frequently experiences natural disasters and faces the adverse effects of climate change.