The Fiji Government has announced its borrowing calendar and annual borrowing plan (ABP) for the fiscal year 2024-2025, set to begin issuing government papers this month. This move offers investors additional options for their investments.
According to the 2024-2025 National Budget, the government aims to borrow over $900 million throughout the year, utilizing a blend of local and international borrowing strategies. Detailed information regarding the government’s borrowing strategy is now accessible on the Reserve Bank of Fiji’s website.
The government has stated its intention to maintain a balance between domestic and external currency borrowing while managing the debt composition in relation to market risks. The total financing requirement has been estimated at $984.6 million. Of this amount, $298.3 million is expected to be raised from external sources, while $686.3 million will come from domestic sources.
Furthermore, the government may adjust its limits on overseas borrowing while reducing domestic borrowing limits, allowing it to utilize various financing sources while remaining within the Parliament-approved borrowing limit. The government will also seek external borrowing options with favorable terms.
Domestic debt will be issued through Fiji Infrastructure Bonds (FIB) and Viti Bonds. Plans include gradually minimizing the issuance of short-term treasury bills and moderating amounts in two, three, five, and ten-year bonds. A significant portion of the debt, totaling $516.3 million, will be raised through long-term bonds that mature in 15 and 20 years.
Viti Bonds, currently open for investment up to $10 million, will be available until July 11, 2025. External financing for Fiji’s debt will be acquired through loans from established multilateral and bilateral partners.
The forecast for new external financing stands at $231.6 million, which will consist of approximately $158.6 million in multilateral financing and $73.0 million in bilateral financing. Out of the total $984.6 million to be raised, $635.5 million is designated for financing the budget deficit, while $349.1 million will be allocated for debt repayment.