Parliament will on Monday debate a motion seeking approval for the Government to guarantee an additional $200 million in borrowings by Fiji Airways.
According to the parliamentary schedule of motions for debate, the Minister for Finance will move the motion under section 145(1) of the Constitution and Standing Order 131.
The motion seeks Parliament’s approval for the Government to guarantee Fiji Airways’ additional borrowings of $200 million for three years, effective from August 1, 2026 to June 30, 2029.
It also proposes that Fiji Airways be exempted from paying a guarantee fee to the Government.
The motion further seeks approval for the Government guarantees covering the specified borrowing facilities to remain in place until the facilities reach full maturity or are discharged.
The proposed guarantee comes several years after Parliament was asked to approve increases to government-backed borrowing for the national airline following the severe impact of the COVID-19 pandemic on international aviation.
In October 2021, Parliament considered a proposal to increase the existing local borrowing guarantee for Fiji Airways from $191.1 million to $241.1 million.
The proposed offshore borrowing guarantee was also increased from US$117.1 million to US$142.1 million.
At the time, the changes took the total government guarantee ceiling for Fiji Airways from approximately FJ$455 million to FJ$561.4 million.
The 2021 proposal also provided for Fiji Airways to be exempt from paying a guarantee fee and for the guarantees to remain valid until the relevant borrowing facilities were discharged or fully settled.
Monday’s motion will put the national carrier’s government-backed borrowing arrangements back before Parliament, with MPs being asked to approve the additional $200 million guarantee and associated conditions.
