Fiji’s total government debt is projected to climb to an all-time high of $11.7 billion by the end of July 2026 — the equivalent of about 84 percent of GDP — Finance Minister Esrom Immanuel said at last week’s signing of loan and grant agreements with the Asian Development Bank (ADB). The figures were disclosed as the government formalised financing for two major development projects: the Pacific Healthy Islands Transformation Project (PHIT) and the Enhancing Climate Resilience of Coastal Communities Project.
Immanuel told officials and development partners the disclosure should be seen in the context of the government’s wider financing plan. “Debt is projected at $11.7 billion or around 84 percent of GDP by the end of July 2026,” he said, while stressing that borrowings linked to the two ADB-supported projects remain “within our fiscal targets and investment focus area.” He noted total government debt was about $10.8 billion at the end of July last year — roughly 78.9 percent of GDP — underscoring the rise over a 12‑month period.
The Ministry of Finance’s latest Debt Report (Quarter 1, 2025‑2026) reinforces the trajectory: total government debt stood at $10.82 billion at the end of October 2025. The report also highlights the composition of the portfolio, saying most borrowing has been raised in the domestic market while the international portion is mainly denominated in US dollars. The government says it is managing that stock in line with the 2024‑2026 Medium Term Debt Strategy, which seeks to minimise long‑term borrowing costs while containing risk.
At the signing, the ADB confirmed it had approved a US$50 million soft loan for the PHIT project — about FJ$112 million — which the bank is co‑financing alongside the World Bank, the OPEC Fund and the World Health Organization’s Pandemic Fund. PHIT is designed to strengthen health systems and pandemic preparedness across participating Pacific countries; details of Fiji’s specific allocations and project timelines were not disclosed at the ceremony.
The latest projection represents a further upward adjustment from figures outlined in previous budget documentation. Budget papers and earlier analysis had already signalled rising borrowing needs to cover fiscal shortfalls and maturing debt, and implemented borrowing plans for 2024‑25 envisaged increases in total debt. The new 84 percent of GDP estimate, however, formalises how those plans are translating into a higher debt‑to‑GDP ratio as the government ramps up capital and resilience investments.
Government officials insist the increases are deliberate and targeted, aimed at financing priority infrastructure and resilience measures while maintaining access to concessional funding. Yet the trend will test fiscal space and public finances as authorities balance investment imperatives with debt sustainability objectives. The Finance Ministry’s quarter‑one report and the medium‑term debt strategy will be central to monitoring whether borrowing levels remain consistent with the stated aim of minimising costs within a prudent risk envelope.
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