Fiji’s Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has signed an Exchange of Notes with the Japanese government for a second stand-by disaster loan valued at approximately FJD $72 million. This funding is aimed at supporting disaster recovery and rehabilitation efforts in the future.
The financing is offered at highly concessional terms, featuring a 40-year repayment period, which includes a 10-year grace period, and an interest rate of just 0.40% per annum. Access to these funds will be available 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 support for Fiji’s development goals over the years, including contributions to infrastructure projects, educational and health initiatives, and assistance in disaster response and building resilience. He noted the recent involvement of the Japanese private sector, which holds a 44 percent equity stake in Energy Fiji Limited.
He further recognized Japan’s steadfast support during crises such as the COVID pandemic and natural disasters, emphasizing the direct financial and technical aid provided through the Japan International Cooperation Agency (JICA) and the Japanese government, as well as support facilitated through the Asian Development Bank.
Prasad underscored the importance of Fiji’s continuous preparedness in light of its vulnerability to natural disasters and the challenges posed by climate change.