The Fiji Sugar Corporation defaulted on the redemption of $25million in bonds held by Fiji National Provident Fund this year, states the Permanent Secretary for Economy Makereta Konrote.
As a result, a call on the guarantee was made by the FNPF as the bonds were part of the Government’s guaranteed borrowings by FSC, she stated in the economic and fiscal update supplement to the 2020-2021 budget.
“Government maintains its integrity as guarantor and has reached an agreement with FNPF to settle the debt,” Ms Konrote said.
“Government will continue to stringently monitor guaranteed entities to ensure that fiscal risks associated with a likely call on the guarantee are assessed and mitigated in a timely manner.”
