The Cabinet has sanctioned the cancellation of $200.2 million owed by the Fiji Sugar Corporation (FSC). This decision was taken during a Cabinet meeting on July 15, 2024, as indicated in the FSC’s 2024 annual report. The report emphasizes that this debt relief from the government is anticipated to substantially improve the corporation’s financial liquidity and overall financial standing.
Currently, the management is evaluating the comprehensive effects of this debt forgiveness on the corporation’s future financial health and operational performance. The FSC has reported facing considerable losses over recent years.
The corporation is also obligated to make debt repayments totaling $156.1 million by the end of the financial year on May 31, 2025. In addition, the FSC is in need of further funding to support its working capital, ongoing capital expenditures, and to cover operating losses. It has been noted that without governmental assistance, the corporation’s financial situation and existing debt levels suggest it may not be able to sustain its operations in the long term.