The China-based Asian Infrastructure Investment Bank (AIIB) board of directors have approved a $112 million loan to Fiji.
The Fijian Government will use the money to restore fiscal sustainability and promote inclusive climate-resilient economic growth amid the ongoing spread and impact of COVID-19.
“AIIB is providing support to Fiji’s position in alleviating government fiscal pressures by helping them strengthen the country’s efforts to boost health system readiness, protect livelihoods and provide economic relief for affected businesses,” said AIIB director general of Infrastructure Investment Department (Region 1) Rajat Misra in a statement.
The loan was part of AIIB’s COVID-19 Crisis Recovery Facility (CRF) and co-financed with the Asian Development Bank.
“This program aligns with our CRF’s focus on enhancing pandemic response, preparedness, and recovery, and it is incumbent upon AIIB to support our members and their most vulnerable people get through this public health challenge.” The AIIB said the loan would also assist the Fijian government in “systematically mainstreaming resilience into its budgeting and decision-making processes.”
So far, AIIB which began operations in Beijing in January 2016, has approved $223 million in loans to Fiji.
“Tourism-dependent countries like Fiji have been particularly hard-hit by the pandemic, as their economies have been adversely affected by global travel restrictions,” said the AIIB in a statement.
“Being heavily reliant on the tourism sector, the government’s spending has been curtailed by constrained fiscal space because of the sharp dent in economic activities due to successive outbreaks and related restrictions on movement and business activities across the Pacific island archipelago.”
