Deputy Prime Minister and Minister for Finance Professor Biman Prasad has stated 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 received Cabinet approval in July.
The facility, provided by the Japanese International Cooperation Agency (JICA), amounts to $72 million, and it will be part of the Government’s loan funding program for the 2024-2025 financial year.
Professor Prasad expressed gratitude for Japan’s ongoing assistance over the years, especially during the COVID-19 pandemic and natural disasters, when the country urgently needed support from Japan and other development partners.
He noted that this proposed loan from JICA aims to bolster economic stabilization and development efforts, focusing on improving 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). Despite this standard, given Fiji’s vulnerability to natural disasters, Japan has offered a standby loan facility of $72 million.
Professor Prasad explained that to access this loan, a Declaration of a State of Natural Disaster must be made by Cabinet based on advice from the National Disaster Management Council, following the stipulations of the Natural Disaster Management Act of 1998. Therefore, the loan is conditional on such a declaration being made after a disaster occurs, along with adhering to sound macroeconomic and public financial management strategies.