Government contingent liabilities stood at $1.66 billion as of July 2025, equivalent to 12.2 percent of GDP, the Treasury said in the Medium Term Fiscal Strategy 2026–2027 to 2028–2029 tabled in Parliament last week. The figure is a marginal rise from $1.658 billion recorded in the previous financial year, but continues a downward trend in contingent liabilities as a share of the economy.
The bulk of contingent exposure remains in government-guaranteed debt, which totalled $1.004 billion, or 7.4 percent of GDP. That component fell slightly—by about 1.1 percent—compared with the prior year. Fiji Airways is the largest single guaranteed borrower at $366.7 million, followed by Fiji Sugar Corporation ($323.6 million), the Fiji Development Bank ($200.4 million), the Housing Authority ($113.6 million) and Pacific Fishing Company Limited ($0.6 million).
Beyond these guarantees, other explicit contingent liabilities were reported at $603.7 million, representing 4.4 percent of GDP. These items include Fiji’s shareholdings and capital subscriptions to multilateral financial institutions such as the International Bank for Reconstruction and Development, the Asian Development Bank and the Asian Infrastructure Investment Bank—commitments that can give rise to calls on the national balance sheet in certain circumstances.
Implicit contingent liabilities—potential obligations that are not formally guaranteed but could materialise, for example through bailouts or other government support—declined slightly to $52.5 million, or 0.4 percent of GDP. The strategy document highlights the distinction between explicit and implicit obligations as part of efforts to present a clearer picture of fiscal risk.
While the nominal stock of contingent liabilities has been relatively stable in recent years, the government emphasised the improvement in the ratio of contingent liabilities to GDP: it has fallen from 18.7 percent in 2021 to 12.2 percent in 2025. The Fiscal Strategy frames this as evidence of improved fiscal positioning and reduced relative exposure, even as the absolute dollar value remains close to last year’s level.
The Government reiterated that it will continue to closely monitor the financial performance and activities of guaranteed entities to minimise fiscal risks and safeguard long-term financial stability. The Medium Term Fiscal Strategy sets out the monitoring approach as part of broader fiscal management measures that will guide budgeting and risk oversight through to 2029.
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