Deputy Prime Minister and Minister for Finance Professor Biman Prasad announced that the proposed standby loan for Disaster Recovery and Rehabilitation from the Government of Japan represents the transition from Phase 1 to Phase 2, which received Cabinet approval in July.
This loan, amounting to $72 million, is provided by the Japanese International Cooperation Agency (JICA) and will be part of the Government’s funding plan for the 2024-2025 Financial Year.
Professor Prasad expressed gratitude for the continuous support of the Government of Japan, especially during the challenging COVID-19 pandemic and other natural disasters, when Japan and various development partners offered crucial assistance to Fiji during urgent times.
The Deputy Prime Minister emphasized that the proposed JICA loan aims to foster economic stability and bolster disaster risk management capabilities.
He noted that the principal offered by the Japanese Government equates to 0.25 percent of Fiji’s Gross Domestic Product. However, due to Fiji’s susceptibility to natural disasters, Japan has offered the standby loan facility of $72 million.
He explained that the loan’s disbursement is contingent upon a Declaration of a Natural Disaster by the Cabinet, following advice from the National Disaster Management Council as stipulated in the Natural Disaster Management Act of 1998. This means that the loan can only be accessed after a designated disaster and is subject to adherence to sound macroeconomic and public financial management practices.