Deputy Prime Minister and Finance Minister Professor Biman Prasad announced that the proposed standby loan for Disaster Recovery and Rehabilitation from the Government of Japan marks the transition from Phase 1 to Phase 2, a move approved by the Cabinet in July.
The loan facility, offered by the Japanese International Cooperation Agency (JICA), amounts to $72 million and is part of the government’s financing strategy for the 2024-2025 Financial Year.
Professor Prasad expressed gratitude for Japan’s continuous support, especially during the challenging COVID-19 pandemic and various natural disasters, when immediate assistance was crucial to Fiji.
He pointed out that the loan from JICA aims to support economic stabilization and further bolster the capacity for Disaster Risk Management initiatives.
The principal amount provided by Japan corresponds to 0.25 percent of Fiji’s Gross Domestic Product. Given Fiji’s susceptibility to natural disasters, the Japanese Government has made this standby loan of $72 million available.
Prasad explained that the disbursement of this loan is conditional upon the Cabinet declaring a State of Natural Disaster, based on advice from the National Disaster Management Council, in compliance with section 17(1) of the Natural Disaster Management Act 1998. This means that the loan will only be accessible after a disaster has occurred and a national disaster declaration has been made, along with adherence to effective macroeconomic and public financial management strategies.