Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has signed an Exchange of Notes with the Government of Japan for a second standby disaster loan of approximately FJD$72.0 million. This funding aims to support future disaster recovery and rehabilitation efforts in Fiji.
The loan is characterized as highly concessional, featuring a 40-year repayment term, including a 10-year grace period, and an interest rate of just 0.40% per annum. Access to this financing can be granted when the Cabinet declares a “Natural Disaster” based on advice from the National Disaster Management Council.
Professor Prasad highlighted Japan’s significant support for Fiji’s development goals over the years, which includes investments in infrastructure, contributions to the social sectors such as education and health, and collaboration in disaster response and resilience efforts. He noted Japan’s recent mobilization of private sector investment, including a 44 percent equity stake in Energy Fiji Limited.
He further expressed gratitude for Japan’s steadfast support during crises, such as the COVID-19 pandemic and natural disasters, providing direct financial and technical assistance through the Japan International Cooperation Agency (JICA) and the Japanese Government, as well as indirect support through the Asian Development Bank.
Professor Prasad emphasized the importance of preparation for Fiji, a country vulnerable to natural disasters and the impacts of climate change.