Governement has no definite time-line for repaying Fiji Sugar Corporation (FSC) loans, says Sugar Minister Tomasi Tunabuna.

Mr Tunabuna said Government was already servicing parts of the debt, including a loan from India’s Exim Bank taken under previous administrations.

“Last year we wrote off some loans,” he said.

He said these loans were no longer recoverable from FSC.

“This year, we are guaranteeing some loans, which means that if FSC is unable to repay them, the Government will be responsible for payment.”

Responding to queries from this newspaper, Mr Tunabuna said FSC’s current debt ran into the millions due to accumulated bank interest. The loan was originally intended for infrastructure upgrades and mill improvements, but the expected outcome had not been fully achieved.

“Unfortunately, those changes did not achieve the results we had hoped for.”

It is believed FSC’s loan has now exceeded $500million due to interest charges.

“We are paying at least $18million each year in an attempt to pay off FSC debt.”

He said FSC was now being blamed for inefficiencies linked to earlier policy decisions.

“The same people who approved those decisions are now blaming FSC for inefficiencies.”

He said Government was now carrying the financial burden while FSC continued to face criticism.