Deputy Prime Minister and Finance Minister Professor Biman Prasad has signed a stand-by loan agreement worth $75 million with the Japan International Cooperation Agency (JICA) to meet urgent financial requirements during the recovery and rehabilitation phase following disasters.
In a media statement, Professor Prasad emphasized the importance of this agreement as Fiji braces for potentially one or two tropical cyclones in its Exclusive Economic Zone during the cyclone season. He noted that this support also focuses on improving technical capacity for disaster preparedness and response.
The Deputy Prime Minister specified that the loan will only be activated if the Cabinet officially declares Fiji as being in a state of natural disaster. Once triggered, these funds will allow the Government to promptly respond to emergencies, including providing immediate aid to affected citizens.
During the signing ceremony, JICA Resident Representative Satoshi Wakasugi remarked that the concessionary loan is designed to mitigate disaster risks through the execution of JICA’s technical cooperation projects. He added that Japan fully backs Fiji’s implementation of the 2050 Strategy by strengthening collaboration under the new ‘Pacific Climate Resilience Initiative,’ which focuses on enhancing disaster risk reduction and response capacities.
The loan features a concessional interest rate of 0.4% with a repayment period of 40 years, including a 10-year grace period. Professor Prasad noted that this is the second concessional loan facility Fiji has secured from JICA, the first having been granted in 2019. He highlighted that this pre-negotiated financing is crucial for ensuring swift disbursement during disaster situations.