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 forgiveness from the Government is anticipated to significantly improve the corporation’s liquidity and overall financial stability.
Management is currently evaluating the implications of this debt relief on the corporation’s future financial outlook and performance. The FSC has reported sustained financial losses in recent years, and it also highlighted that the corporation faces debt repayment obligations of $156.1 million for the financial year ending May 31, 2025.
In addition, the FSC requires additional funding to address its working capital needs, ongoing capital expenditures, and to cover operating losses. The report notes that the corporation’s financial challenges, including its debt levels and continual losses, suggest that, without Government support, the corporation may not be able to sustain its operations.