The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, has stated that the proposed standby loan for Disaster Recovery and Rehabilitation from the Government of Japan represents a continuation from Phase 1 to Phase 2, which was approved by the Cabinet in July.
Professor Prasad noted that this assistance, provided by the Japanese International Cooperation Agency (JICA), amounts to $72 million and is part of the Government’s loan funding program for the 2024-2025 financial year.
He expressed gratitude for Japan’s ongoing support over the years, especially during the COVID-19 pandemic and other natural disasters, when immediate assistance was vital for Fiji.
The Deputy Prime Minister emphasized that the proposed loan from JICA aims to bolster economic stabilization and enhance Disaster Risk Management capabilities. He indicated that the principal amount offered by the Japanese Government is based on 0.25 percent of Fiji’s Gross Domestic Product (GDP).
In light of Fiji’s vulnerability to natural disasters, the Japanese Government is extending a $72 million standby loan facility. Professor Prasad explained that the release of these funds is contingent upon a Declaration of a State of Natural Disaster by the Cabinet, as advised by the National Disaster Management Council, in accordance with the Natural Disaster Management Act of 1998. This loan can only be drawn down after a national disaster has been officially declared and is subject to robust macro-economic and public financial management strategies.