Fiji and Japan have signed a $72 million Stand-by Loan agreement for the second phase of the Disaster Recovery and Rehabilitation project. This initiative aims to bolster the Fijian government’s policies on disaster risk reduction and management.
The loan is designed to assist in rapid recovery efforts following natural disasters, allowing the Fijian government to request financial support for recovery costs once a natural disaster is formally declared. The stand-by loan’s goal is to aid in economic stabilization and development by enhancing Fiji’s disaster risk management capabilities and supporting post-disaster recovery efforts.
Deputy Prime Minister and Finance Minister, Professor Biman Prasad, stated that the loan comes with favorable terms, including a 40-year repayment period, a 10-year grace period, and a low annual interest rate of 0.4 percent. He emphasized that the funds would only be accessed following significant natural disasters declared by the Cabinet.
Professor Prasad noted Japan’s pivotal role, through the Asian Development Bank, in supporting Fiji’s infrastructure, education, health, and disaster response initiatives. He recalled that the first phase of disaster financing aided recovery efforts during Tropical Cyclone Harold in 2020.
Japanese Ambassador to Fiji Rokuichiro Michii remarked that the concessional loan reinforces the ongoing partnership between Fiji and Japan, focusing on disaster response and risk mitigation. He affirmed Japan’s commitment to Fiji’s development through official assistance and indicated that the recent loan signing is part of a larger series of five exchange notes totaling around $133 million, which are expected to be signed in the coming weeks.