The Cabinet has sanctioned the cancellation of $200.2 million owed by the Fiji Sugar Corporation (FSC). According to FSC’s 2024 annual report, this decision was reached by the Cabinet on July 15, 2024.
The report emphasized that this debt forgiveness from the Government is anticipated to greatly improve the corporation’s liquidity and overall financial condition. Currently, management is evaluating the complete impact of this debt write-off on the corporation’s future financial health and operational performance.
The FSC has faced substantial losses in recent years. The corporation has outstanding debt repayment obligations totaling $156.1 million for the financial year ending on May 31, 2025. Additionally, it requires further funding to cover its working capital needs, ongoing capital expenditures, and to manage its operating losses.
The report warned that given the corporation’s financial circumstances, along with its debt levels and recurring losses, continued support from the Government is crucial for the corporation’s survival.