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 represents a continuation from Phase 1 to Phase 2, which was approved by the Cabinet in July.
He stated that this 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 2024-2025 financial year.
Prof Prasad expressed gratitude for the ongoing support from Japan, especially during the COVID-19 pandemic and other natural disasters when Japan and other development partners provided critical assistance to Fiji.
He emphasized that JICA’s proposed loan aims to support economic stabilization and enhance Disaster Risk Management capacities. The principal amount provided by the Japanese Government equates to 0.25 percent of Fiji’s Gross Domestic Product.
Considering Fiji’s vulnerability to natural disasters, this standby loan facility of $72 million was offered. Prof Prasad explained that accessing the loan requires a Declaration of a State of Natural Disaster by Cabinet, based on advice from the National Disaster Management Council, as stipulated in the Natural Disaster Management Act 1998. This loan is contingent on meeting that condition after a disaster occurs and is also dependent on maintaining sound macroeconomic and public financial management strategies.