The Asian Development Bank (ADB) said it stepped in to provide a $40 million loan to Fiji Airways when traditional lenders were not able to provide funding to the airline, states a new report released by the ADB.

The “Private Sector Operations in 2021 ­— Report on Development Effectiveness” said to cover fixed costs incurred during the shutdown and provide working capital to ramp up and restore flights, the ADB extended the loan to the national carrier.

“The loan, which is guaranteed by the Republic of Fiji, is ADB’s first for the private sector in Fiji,” the report stated.

“It is also the (ADB’s) private sector operations department’s first financing support for the airline industry.

“Fiji Airways has a strong safety record, a new fleet of aircraft, and a history of profitable operations.

“It plays an indispensable role in supporting the South Pacific’s economic and social development, connecting many small islands in the region, including those in fragile and conflict- affected situations, to the rest of the world.”

The ADB said the loan to Fiji Airways was a first-of-its kind investment in Fiji.

“ADB stepped in to provide the necessary liquidity, and its support for Fiji Airways is expected to have a strong demonstration impact.”