Government plans to raise domestically $343 million of the $950m it requires for the 2021-2022 financial year.
This detail is contained in an Asian Development Bank’s Proposed Policy-Based Loan documents, detailing Fiji’s plans for a $320m loan from the bank.
Fiji is seeking the loan under the Sustainable and Resilient Recovery Program, to be used for law and judiciary, public expenditure and fiscal management and social protection initiatives.
The ADB documents also reveals Australia will provide an additional $128m as co-financiers that will bring the total loan amount to Fiji to $448m. “The program will help meet the government’s financing requirements for FY2022, which are projected to be $950m,” states the ADB document.
“The Government plans to cover $535m (56 per cent of the total) through external financing, $343m (36 per cent) through domestic borrowing, and $72m (8 per cent) from cash reserves.
“The proposed ADB program will finance 28 per cent of planned external borrowing, with the remainder expected to come from partners, including budget support loans from the government of Japan and the World Bank.
“The Government of Fiji has requested a loan not exceeding $150m from ADB’s ordinary capital resources to help finance the program.
“Of this amount, climate financing is estimated to be $23m, based on policy actions that result in climate outcomes.”
Out of the ADB $320m, law and judiciary will get $106m, public expenditure and fiscal management will be allocated $160,000 and social protection initiatives will receive $53m.
“The Sustainable and Resilient Recovery Program supports Fiji to undertake reforms to promote a green, inclusive, and climate-resilient pathway for growth following the coronavirus disease (COVID-19) pandemic,” states the ADB document.
The financial assistance will improve public financial management for fiscal resilience and debt sustainability, implement inclusive fiscal and social policies for community resilience, and strengthen the enabling environment for resilient private sector recovery, says the ADB.
“It is aligned with the Asian Development Bank (ADB) Strategy 2030 operational priorities of tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; strengthening governance and institutional capacity; and accelerating progress in gender equality.”
The ADB says it will carry out a fact-finding mission to Fiji in March, hold loan negotiations in April with loan approval and signing in May.
