The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has signed a $75 million standby loan agreement with the Japan International Cooperation Agency (JICA) to support immediate financial requirements during the recovery and rehabilitation phase following disasters.
In a media briefing, Prof Prasad emphasized the importance of this initiative, particularly as Fiji anticipates the occurrence of one or two tropical cyclones within its Exclusive Economic Zone during the cyclone season. He noted that the agreement also focuses on strengthening technical capabilities for disaster preparedness and response.
The loan will be activated only if the Cabinet declares Fiji to be in a state of natural disaster. Once activated, the funding will facilitate various governmental responses, including providing immediate aid to affected individuals.
Satoshi Wakasugi, JICA’s Resident Representative, described the loan as a critical instrument for minimizing disaster risks through JICA’s technical cooperation initiatives. He reiterated Japan’s commitment to supporting the 2050 Strategy by enhancing collaborations under the new ‘Pacific Climate Resilience Initiative,’ which centers on bolstering disaster risk reduction and response capacities.
The loan features favorable terms, including a 0.4% interest rate and a repayment duration of 40 years, with an initial 10-year grace period. Prof Prasad mentioned that this is the second concessional loan facility obtained by Fiji, following a previous agreement with JICA in 2019. He stated that this pre-negotiated financing arrangement ensures rapid disbursement during natural disaster emergencies.