Fiji’s Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has formalized an agreement with the Government of Japan for a second standby disaster loan worth approximately FJD $72 million. This funding aims to support future disaster recovery and rehabilitation efforts.
The financing structure is highly concessional, featuring a repayment term of 40 years, with a grace period of 10 years and an annual interest rate of 0.40%. Access to these funds will commence following a formal declaration of a natural disaster by the Cabinet, based on recommendations from the National Disaster Management Council.
Professor Prasad highlighted Japan’s longstanding support for Fiji’s developmental goals, including infrastructure investment, assistance in social sectors such as education and health, collaboration on disaster response, and recent efforts to attract Japanese private sector investment, exemplified by a 44% equity stake in Energy Fiji Limited.
He acknowledged Japan’s unwavering assistance during crises, notably during the COVID-19 pandemic and various natural disasters, through direct financial and technical support from JICA and the Japanese Government, as well as indirect contributions via the Asian Development Bank.
The Minister emphasized the importance of being prepared, given Fiji’s vulnerability to frequent natural disasters and the impacts of climate change.