The government has guaranteed $1.6 billion in debt incurred by state-owned enterprises, in addition to the $10.309 billion already recorded in its financial statements. This information was released by the Ministry of Finance, Strategic Planning, National Development, and Statistics, which published provisional financial results for the fiscal year ending July 2024.
According to the ministry, this represents a 6.7 percent decrease compared to the same period last year, a decline attributed to the repayment of these guaranteed debts. During the 2023-2024 financial year, Parliament approved guarantees for the Fiji Development Bank (FDB) borrowings amounting to $130 million for the period from March 1, 2024, to February 28, 2025. Additionally, the government renewed its guarantee of $150 million for the Housing Authority’s borrowings for five more years, from July 1, 2024, to June 30, 2029.
The ministry detailed that a three-tier risk assessment approach was implemented to evaluate the risks facing the government. This evaluation included (i) analysis of the last three years’ performance, (ii) review of interim financial statements and cash flow projections, and (iii) general assessments of the industry, operations, and economic conditions.
Fiji Sugar Corporation Limited (FSCL) was noted as a high-risk entity due to its current insolvent status. The ministry acknowledged that FSCL remains dependent on government financial assistance for its operational continuity. It also pointed out that while the Cabinet’s approval of a debt write-off for FSCL and PAFCO might enhance their balance sheets, it will not lead to their financial viability in the short to medium term.
The government’s debt portfolio is predominantly domestic, with 63 percent sourced from local borrowings. Of the total debt, $6.5 billion is domestic while $3.7 billion is attributed to external sources.