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 a progression from Phase 1 to Phase 2, a plan approved by the Cabinet in July.
The loan, amounting to $72 million provided by the Japan International Cooperation Agency (JICA), is part of the government’s financing strategy for the 2024-2025 fiscal year.
Professor Prasad expressed gratitude for Japan’s ongoing support to Fiji, especially during the challenges posed by the COVID-19 pandemic and other natural disasters when immediate assistance was crucial.
He noted that the JICA loan aims to enhance efforts in economic stabilization and improve Disaster Risk Management capabilities.
The amount offered by the Japanese Government is equivalent to 0.25 percent of Fiji’s Gross Domestic Product. Considering Fiji’s vulnerability to natural disasters, this standby loan facility of $72 million has been extended.
According to Professor Prasad, accessing the loan requires a Cabinet declaration of a State of Natural Disaster following guidance from the National Disaster Management Council, as stipulated in the Natural Disaster Management Act of 1998. This means the loan can only be drawn if a national disaster is officially declared and is also dependent on maintaining sound macro-economic and public financial management strategies.