Parliament has approved a $130 million loan guarantee by the Fiji Development Bank (FDB) to support micro, small and medium enterprises in essential sectors.
The motion by Deputy Prime Minister and Minister of Finance Professor Biman Prasad yesterday afternoon was unanimously supported by both sides of the House. In his submission, Professor Prasad moved that:
q Government provide a guarantee for the Fiji Development Bank borrowings for the 12 months period from March 1, 2024, to February 28, 2025, through the issuance of short- and long-term bonds, promissory notes and RBF financial facility and other short-term borrowings;
q Government guarantee for a sum of $130 million for the guarantee period; and
q The bank pays a guaranteed fee of 0.075 per cent on the cumulative utilised guarantee.
“This government guarantee request from the bank is to continue the facilitation of government’s policy by lending to essential sectors of the economy, particularly sourced based sectors including agriculture, mining and manufacturing, transport, communications which will assist the disadvantaged of the community to earn a decent livelihood,” Prof Prasad said.
Supporting the motion, Opposition Member Faiyaz Koya said supporting MSMEs was an essential part of the development of any economy.
“We have to support these ideas when it comes to banks such as FDB,” Mr Koya said. “They (MSMEs) really form an integral part of our economic growth.
“I am really happy to see that the ministry concerned is continuing to do that because they actually need assistance.”
