The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad, announced that the proposed standby loan for Disaster Recovery and Rehabilitation from the Government of Japan is a continuation from Phase 1 to Phase 2, which received Cabinet approval in July.
Professor Prasad explained that this $72 million facility offered by the Japanese International Cooperation Agency (JICA) is included in the Government’s loan funding program for the 2024-2025 Financial Year. He expressed gratitude for Japan’s long-standing support, particularly during the challenging periods of the COVID-19 pandemic and various natural disasters, when immediate assistance was provided to Fiji.
The Deputy Prime Minister emphasized that the purpose of the proposed JICA loan is to promote economic stabilization and enhance efforts in Disaster Risk Management. He noted that the principal amount offered by Japan corresponds to 0.25 percent of Fiji’s Gross Domestic Product (GDP).
Given Fiji’s susceptibility to natural disasters, the Japanese Government has offered this $72 million standby loan facility. Professor Prasad clarified that the loan can only be accessed following a Declaration of a State of Natural Disaster by the Cabinet, based on the advice of the National Disaster Management Council, as outlined in the Natural Disaster Management Act of 1998. He added that the loan is contingent upon fulfilling this condition after a disaster occurs and depends on maintaining sound macro-economic and public financial management strategies.