The Deputy Prime Minister and Finance Minister, Professor Biman Prasad, has officially signed an Exchange of Notes with the Government of Japan for a second stand-by disaster loan worth approximately FJD 72 million. This financial support is intended to aid in future disaster recovery and rehabilitation efforts.
The loan features highly concessional terms, with a 40-year repayment period, including a 10-year grace period, and an annual interest rate of 0.40%. Access to the funds will be granted following a ‘Declaration of Natural Disaster’ made by the Cabinet, based on recommendations from the National Disaster Management Council.
Professor Prasad highlighted Japan’s significant contributions to Fiji over the years, emphasizing its support for infrastructure development, education, health sectors, and collaboration during disasters. He noted Japan’s proactive role in mobilizing private sector investment, exemplified by a 44 percent equity stake in Energy Fiji Limited.
He also acknowledged Japan’s steadfast support during crises, including the COVID-19 pandemic, through direct financial and technical assistance via JICA and the Japanese Government. Additionally, he recognized Japan’s indirect support through the Asian Development Bank, where it is a key shareholder.
The Minister reiterated the importance of being prepared for Fiji’s frequent natural disasters and the adverse impacts of climate change.