Government-guaranteed debt has climbed to more than $1.13 billion, according to the Pre-Election Economic and Fiscal Update released by the Ministry of Finance on June 7, highlighting the growing level of State-backed financial exposure.
The report shows Government-guaranteed debt stood at $1,131.4 million at the end of April 2026, equivalent to 8.0 per cent of GDP.
This represents a 17.5 per cent increase compared with the previous financial year, when guaranteed debt stood at $1.05 billion.
According to the Ministry of Finance, the increase was driven largely by higher guaranteed borrowings by the Fiji Development Bank (FDB).
“Government guaranteed debt stood at $1,131.4 million, equivalent to 8.0 per cent of GDP at the end of April 2026. This marks 17.5 per cent increase compared to the previous financial year, resulting from an increase in guaranteed borrowings by FDB,” the report states.
The FDB’s Government-guaranteed debt increased sharply from $245.1 million in July 2025 to $347 million by April 2026, making it the largest recipient of Government guarantees.
The Fiji Airways guaranteed balance declined to $340.9 million, continuing a downward trend as the national airline reduced its reliance on Government-backed borrowing.
Meanwhile, guarantees provided to the Fiji Sugar Corporation remained significant at $320.2 million, while the Housing Authority accounted for $119.2 million.
The report shows Government guarantees now make up the largest share of Fiji’s contingent liabilities portfolio.
Total contingent liabilities stood at $1.77 billion, with Government guarantees accounting for 64 per cent of that exposure.
Despite the increase in guaranteed debt, the ratio of Government guarantees to GDP remains below the levels recorded in 2022, when guarantees represented 10.7 per cent of GDP. The latest figure stands at 8.0 per cent of GDP.
The Ministry said Fiji Airways’ declining guaranteed balance helped offset some of the increase arising from other state-backed entities.
The figures underscore the Government’s continued role in supporting major public institutions and strategic entities through borrowing guarantees, while also highlighting the potential fiscal risks should any of the guaranteed organisations face financial difficulties in the future.
