A $A2billion ($F2.89b) guarantee arrangement between the Australian Government and ANZ Bank will see the latter continue its banking operations in nine countries in the Pacific, including in Fiji.
ANZ announced yesterday it has agreed to the arrangement, which will see the Australian government provide up to $A2b ($F2.89b) to support ANZ’s long-term commitment to banking services in the Pacific region for 10 years.
Although in its assessment, the Australian Government assessed the probability of the guarantee being called as “very low”, the deal is still seen as underscoring their shared commitment to continuing to provide access to safe, trusted banking services in the Pacific Island region.
“ANZ has been in the Pacific for more than 140 years and it continues to be an important part of our international network,” ANZ chief executive officer Shayne Elliott said.
“While doing business in the Pacific can be complex, we’re committed to our role in advancing economic development, critical infrastructure and payment networks across the region.
“We will continue to connect Pacific customers to trade and investment opportunities, as well as providing links into our home markets of Australia and New Zealand, and across our international network in Asia, the Middle East, Europe and the United States.
He said the guarantee was not material for ANZ at a Group level but it will help support “a more resilient and sustainable ANZ Pacific business, for the future of the region.” The guarantee, according to the ANZ statement, includes an annual fee payable by ANZ to the Australian Government.
“As part of the arrangement, foreshadowed by the Treasurer in late 2024, ANZ will invest a further $A50 million ($F72.34m) in its Pacific banking systems to enhance its digital banking offering and support ongoing operations in the region,” it stated.
ANZ currently expects the guarantee to commence in the second half of 2025, following the commencement of legislation enabling the guarantee.
ANZ has operations in Fiji, Papua New Guinea, Samoa, Vanuatu, Tonga, Solomon Islands, Timor-Leste, Kiribati and the Cook Islands.
It is one of the only AA- rated banks in the Pacific, employs more than 1,200 people across the region and has invested about $A$95 million in buildings, systems and technology over the last five years.
As part of ANZ’s commitment to improving the financial wellbeing of Pacific people and communities, ANZ will continue to promote and encourage financial literacy through its MoneyMinded program.
Since 2011, the program has reached more than 70,000 people across the Pacific region.
NOTE: This article was first published in the print edition of the Fiji Times dated MARCH 15, 2025.
