The Cabinet has sanctioned the cancellation of $200.2 million owed by the Fiji Sugar Corporation. According to the FSC’s annual report for 2024, this decision was reached on July 15, 2024.
The report indicates that this debt relief from the Government is anticipated to significantly improve the corporation’s liquidity and financial standing. The management is currently evaluating the full impact of this debt forgiveness on the future financial health and performance of the corporation.
It has been noted that the FSC has suffered considerable losses in recent years. Additionally, the corporation has debt repayment obligations totaling $156.1 million for the financial year concluding on May 31, 2025. The corporation is also in need of further funding to cover its working capital needs, ongoing capital expenses, and to offset operating losses.
Considering the company’s financial state, its existing debt levels, and persistent losses, it is clear that without government backing, the corporation may struggle to maintain its operations moving forward.