Deputy Prime Minister and Finance Minister Professor Biman Prasad has announced that the proposed standby loan for Disaster Recovery and Rehabilitation from the Government of Japan is a continuation of the previously endorsed Phase 1 to Phase 2. This plan was approved by the Cabinet in July.
According to Prof Prasad, the facility provided by the Japanese International Cooperation Agency (JICA) amounts to $72 million and is part of the Government’s loan funding program for the financial year 2024-2025.
He expressed gratitude for the ongoing support from the Government of Japan, especially during the challenges of the COVID-19 pandemic and natural disasters, where Japan and other development partners provided immediate assistance to Fiji.
The Deputy Prime Minister emphasized that the proposed loan from JICA aims to bolster economic stability and enhance Disaster Risk Management capabilities.
Prof Prasad explained that the principal amount proposed by the Japanese Government is set at 0.25 percent of the Gross Domestic Product (GDP). He noted that while this percentage applies to Fiji, given the country’s vulnerability to natural disasters, the Japanese Government is offering a standby loan facility of $72 million.
He clarified that the loan can only be accessed once the Cabinet declares a State of Natural Disaster following advice from the National Disaster Management Council, as outlined in section 17(1) of the Natural Disaster Management Act of 1998. Thus, the loan is contingent upon this condition being fulfilled after a disaster occurs and is also dependent on the implementation of sound macroeconomic and public financial management strategies.