The government has officially entered into an Exchange of Notes with Japan to secure a second standby disaster loan of approximately FJD$72 million. This financing will provide support for future disaster recovery and rehabilitation efforts.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, expressed gratitude for Japan’s ongoing support towards Fiji’s development goals. He noted that Japan has played a significant role in various sectors, including infrastructure development, education, health, disaster response, and resilience initiatives. Recently, Japan has facilitated private sector investment, exemplified by a 44 percent equity stake in Energy Fiji Limited.
The Deputy Prime Minister detailed that the loan comes with favorable terms, featuring a 40-year repayment period that includes a 10-year grace period, along with a minimal interest rate of 0.40 percent per annum.
He emphasized Japan’s consistent support to Fiji during crises, such as the COVID-19 pandemic and other natural disasters, providing both direct financial and technical assistance via JICA and the Japanese Government, as well as indirect support through the Asian Development Bank.
Additionally, the Deputy Prime Minister remarked on the need for Fiji to remain prepared due to its vulnerability to frequent natural disasters and climate change impacts.
Japanese Ambassador to Fiji Rokuichiro Michii reiterated Japan’s commitment to aiding Fiji’s disaster resilience and recovery strategies. The standby loan facility is specifically intended to address the country’s financial requirements during recovery periods following natural disasters.