Government will borrow $1.488billion in the 2025–2026 fiscal year to finance its operations and meet maturing debt obligations, according to the Annual Borrowing Plan released by the Ministry of Finance, Strategic Planning, National Development and Statistics.
The plan stated that the total amount “comprises of the funding necessary to cover the estimated net deficit of $886million and estimated debt redemptions of $602million to refinance maturing government debt” including “$361.3million in domestic debt and $240.7million in external loans”.
A mixed financing strategy will be pursued.
“A total of $559.3million is expected to be raised from external sources while the remaining $928.7million from domestic sources,” the plan outlines.
“Government may increase its overseas borrowing limit simultaneously reducing its domestic limit and vice versa.”
On the domestic front, the $928.7million limit will be raised mainly through “the issuance of Fiji Infrastructure Bonds (FIB) and Viti Bonds” with thematic bonds issued if required.
Treasury Bills will also be used “to roll over the existing stock as part of its development objective to build the market yield curve and to finance temporary shortfalls.”
For external debt, the Government expects “new external financing at $388.7million exclusively sourced from multilateral financiers,” along with access to “an emergency stand-by facility for disaster recovery and rehabilitation, of around $78.9million from Japan International Cooperation Agency (JICA) and around $1.8million from European Investment Bank (EIB) through reimbursements.”
The 2025–2026 budget, which underpins the borrowing plan, was passed by Parliament on July 17, 2025.