The Government of Fiji’s outstanding debt reached $10.8 billion at the end of October 2025, the Ministry of Finance reports, marking a 0.5 percent increase over the quarter and a 2.3 percent rise compared with the same period last year.
According to the latest Government Debt Report for Quarter 1 of FY2025/2026, debt now represents 73.8 percent of Gross Domestic Product (GDP) and is projected to climb to 79.8 percent by the end of the current fiscal year.
“While the increase in debt is moderate, we continue to maintain fiscal discipline and ensure that borrowing is aligned with economic priorities and long-term sustainability,” the Ministry said
Of the total government debt, $7 billion is held domestically, while $3.7 billion represents external obligations.
During the quarter, total borrowing amounted to $211.4 million, with $204.9 million sourced domestically and $6.5 million from external partners.
Government also recorded $303.1 million in debt servicing costs, comprising $176.2 million in principal repayments and $126.9 million in interest payments.
The report highlights several financing agreements reached with key development partners.
On 23 September 2025, the Government signed loan and grant agreements with the Asian Development Bank (ADB) for the Healthy Oceans and Water Security Improvement Project (HOWSIP), valued at USD171 million.
“ADB’s support for HOWSIP will strengthen sustainable water supply services and protect marine ecosystems in the Greater Suva Area,” the Ministry said.
Under the HOWSIP package, ADB will provide a USD135 million concessional loan from its ordinary capital resources and a USD10 million grant from the Asian Development Fund. The Government’s contribution is USD26 million.
On 14 October 2025, Fiji also formalised financing with the World Bank’s International Development Association (IDA) for the Pacific Healthy Islands Transformation (PHIT) Project, valued at USD101.9 million. The funding includes USD93.5 million in concessional finance and USD8.4 million in grants.
“This project will help increase access to quality health services across Pacific island countries, with a strong focus on non-communicable disease management — a priority for Fiji,” the report noted.
