FIJI is expected to receive a combined $US230million (about $F500million) in budget support financing from the Asian Infrastructure Investment Bank (AIIB) and the World Bank.
The funding is aimed at helping Government strengthen its finances, improve climate and disaster resilience and advance key reforms before moving into major infrastructure investments.
The package comprises $US80million from the AIIB and $US150million from the World Bank, and is intended to support Government’s reform programme by strengthening economic resilience, improving public financial management and creating a more enabling environment for private-sector growth.
Minister for Finance Immanuel Esrom said the financing was not entirely made up of loans, with the package including both loan and grant funding.
He said the AIIB component had already been allocated in the budget and would support government programs over the current and previous financial years.
“The loans come with a purpose,” he said.
“This support complements our commitment to prudent fiscal management, climate resilience and creating a more enabling environment for businesses and investment.”
Mr Esrom said the loan portion was policy-based financing, continuing support first introduced after the COVID-19 pandemic to strengthen Fiji’s financial systems and climate resilience.
Prime Minister Sitiveni Rabuka said discussions with the AIIB and World Bank formed part of the Government’s broader infrastructure development plans, with project proposals still being finalised by the Ministry of Finance and the Ministry of Works.
Addressing criticism that the Government was increasing national debt through borrowing, Mr Rabuka said no loan agreements had been signed yet and discussions were still taking place with potential development partners.
“Any future borrowing would be considered alongside the Government’s debt repayment commitments to ensure they remained sustainable,” Mr Rabuka said.
Meanwhile, AIIB president Zou Jiayi reaffirmed the bank’s long-term commitment to Fiji.
