Parliament has officially endorsed the Government’s decision to grant a $190 million guarantee for the Fiji Development Bank (FDB) for the fiscal year stretching from March 1, 2025, to February 28, 2026. This new amount reflects an increase from the previous $130 million guarantee and demonstrates a steadfast commitment to strengthening the bank’s operations.
Deputy Prime Minister and Finance Minister Professor Biman Prasad elaborated on the objectives behind this guarantee, stating that it aims to ensure continued financing for crucial sectors such as agriculture, mining, manufacturing, transportation, and micro, small, and medium enterprises (MSMEs). The initiative also seeks to address the needs of disadvantaged communities by enhancing their access to critical financial resources.
Prasad highlighted the FDB’s vital role in supporting the nation’s development goals as outlined in the National Development Plan 2025-2029 and the broader Vision 2050. By securing this government guarantee, risks associated with the bank’s borrowing are mitigated, making its financial products more appealing to investors while simultaneously lowering borrowing costs.
This new motion underscores the government’s proactive strategy to bolster the economy, particularly in rural and agricultural sectors, while enhancing digital capabilities at FDB. The bank aims to provide tailored financial solutions to support local agriculture and fisheries, ultimately improving community livelihoods.
The government’s continued commitment to financial guarantees for state-owned enterprises reflects its determination to ensure financial stability, fostering a business-friendly environment. This recent initiative affirms the government’s dedication to economic recovery and resilience in Fiji, thereby boosting confidence in future investments and developments.
In conclusion, this measure is positioned to not only enhance the operational capacity of the Fiji Development Bank but also heralds promising prospects for the local economy and the prosperity of Fiji’s citizens. The government’s efforts are likely to yield significant benefits, fostering sustainable growth and improving livelihoods across the nation.
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