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 marks the transition from Phase 1 to Phase 2, a plan endorsed by the Cabinet in July. This loan, amounting to $72 million, is offered through the Japanese International Cooperation Agency (JICA) and is part of the Government’s funding program for the financial year 2024-2025.
Professor Prasad expressed gratitude for Japan’s ongoing support over the years, especially during the challenging times of the COVID-19 pandemic and various natural disasters when Japan and other development partners provided crucial assistance to Fiji.
He emphasized that the loan from JICA aims to support economic stabilization and improve disaster risk management capabilities. The principal amount offered by the Japanese Government is equivalent to 0.25 percent of Fiji’s Gross Domestic Product (GDP). Acknowledging Fiji’s susceptibility to natural disasters, the Japanese Government has extended a standby loan facility of $72 million.
The Deputy Prime Minister explained that accessing this loan is contingent upon a formal Declaration of a State of Natural Disaster by the Cabinet, following advice from the National Disaster Management Council, in accordance with the Natural Disaster Management Act of 1998. This loan will only be available after a disaster occurs and is dependent on maintaining a robust macro-economic and public financial management strategy.