The Government of Fiji’s outstanding debt has reached $10.8 billion as of the end of October 2025, according to the Ministry of Finance. This marks a 0.5 percent increase from the previous quarter and a 2.3 percent rise compared to the same period last year. The latest Government Debt Report for the first quarter of the fiscal year 2025/2026 reveals that the debt now accounts for 73.8 percent of the nation’s Gross Domestic Product (GDP), with projections indicating it may rise to 79.8 percent by the end of the fiscal year.
“While the increase in debt is moderate, we continue to maintain fiscal discipline and ensure that borrowing is aligned with economic priorities and long-term sustainability,” stated the Ministry. Domestic borrowing accounts for $7 billion of the total debt, while external obligations stand at $3.7 billion. In the last quarter alone, total borrowing reached $211.4 million, with $204.9 million sourced domestically and $6.5 million obtained from external partners.
The government has also reported $303.1 million in debt servicing costs, which includes $176.2 million in principal repayments and $126.9 million in interest payments. The report emphasizes several financing agreements reached with significant development partners.
On September 23, 2025, the government signed loan and grant agreements with the Asian Development Bank (ADB) for the Healthy Oceans and Water Security Improvement Project (HOWSIP), amounting to USD171 million. “ADB’s support for HOWSIP will strengthen sustainable water supply services and protect marine ecosystems in the Greater Suva Area,” the Ministry highlighted. The HOWSIP package includes a USD135 million concessional loan and a USD10 million grant, with the government contributing USD26 million.
Furthermore, on October 14, 2025, Fiji formalized financing with the World Bank’s International Development Association (IDA) for the Pacific Healthy Islands Transformation (PHIT) Project, valued at USD101.9 million. This financial package comprises USD93.5 million in concessional finance and USD8.4 million in grants. The report emphasizes that this project aims to enhance access to quality health services across Pacific island countries, focusing particularly on managing non-communicable diseases, which is a key priority for Fiji.
The ongoing collaboration with international financial institutions reflects Fiji’s commitment to addressing both environmental and health challenges while navigating its fiscal landscape. The support from these global partners is seen as a vital step towards achieving sustainable development goals in the region.
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