The government has guaranteed $1.6 billion in debt for state-owned enterprises, in addition to the $10.309 billion debt already on its balance sheet. This information comes from the Ministry of Finance, Strategic Planning, National Development, and Statistics, which recently published provisional financial results for the fiscal year ending in July 2024.
According to the ministry, this figure represents a 6.7 percent decrease compared to the same period last year, primarily due to repayments of guaranteed debts. During the 2023-2024 financial year, Parliament approved a guarantee for Fiji Development Bank (FDB) borrowings, amounting to $130 million for the 12 months from March 1, 2024, to February 28, 2025. Additionally, the government renewed its guarantee of $150 million for the Housing Authority’s borrowings for another five years, from July 1, 2024, to June 30, 2029.
The ministry noted that a three-layer risk assessment approach was utilized to evaluate the risks faced by the government. This assessment was based on three factors: the latest three years of historical performance, interim financial statements and cash flow projections, and overall industry assessments, including economic conditions.
Fiji Sugar Corporation Limited (FSCL) was highlighted as a high-risk entity among the guaranteed organizations due to its current insolvent status. The ministry emphasized that FSCL continues to depend heavily on government financial support to maintain its operations.
The Cabinet’s approval for a debt write-off for FSCL and PAFCO may enhance the financial outlook for these entities, though it is unlikely to restore them to a financially viable state in the near term. Notably, the government’s debt profile is predominantly domestic, with 63 percent financed through local borrowing. Of the total debt, $6.5 billion is domestic, while $3.7 billion is classified as external debt.