National airline Fiji Airways is yet to pay off its $75million Fiji Development Bank loan given as a bail out during the COVID-19 pandemic.
While presenting the 2022 and 2023 financial reports before the Parliamentary Standing Committee on Economic Affairs, FDB acting chief executive officer Titilia Kamil confirmed the national airline had just begun repayments.
Responding to committee member and MP Premila Kumar, Mrs Kamil said the repayments included interests.
“I can confirm that Fiji Airways was assisted through the COVID period as part of the government’s attempt to rescue the national airline,” said Mrs Kamil.
“The loan has not been paid off, but they have commenced with full repayment of principal and interest for both accounts with the bank.
“In terms of compliance and in terms of their audited reports, they have always submitted them on time.
“So far, I can confirm that they have started repayments of principle and interests and that is through the on-lend assistance from the RBF (Reserve Bank of Fiji) as well.”
In 2020, the national airline was given a government-guaranteed loan of $455million. The $75million owed to RBF was part of the $455million loan.
In Parliament, former attorney-general Aiyaz Sayed-Khiayum had said the maximum loan term for repayment was 15 years.
He said the loans were not from the government directly but from financial institutions such as the Fiji National Provident Fund, the Asian Development Bank, the Fiji Development Bank, German banks and lessor companies.
According to the then government, FNPF gave a loan of $229million, ADB $134m, FDB $75m, German banks $278m and lessor companies a total of $47m.
