Deputy Prime Minister and Minister for Finance, Hon. Biman Prasad today signed Exchange of Notes with the Government of Japan for a second stand-by disaster loan financing of around FJD$72.0 million, which will assist in any future needs for disaster recovery and rehabilitation.
This is a highly concessional financing with a repayment term of 40 years, including a 10-year grace period and an interest rate of 0.40% per annum. The financing can be accessed once a ‘Declaration of Natural Disaster’ is declared by Cabinet on the advice of the National Disaster Management Council.
“Over the years, Japan has greatly supported Fiji with its development aspirations, including investments in infrastructure development, support in social sectors like education & health, collaboration in disaster response and resilience building and more recently in mobilizing Japanese private sector investment with 44 percent equity stake in Energy Fiji Limited” said Hon Prasad.
“During times of crisis, like the COVID pandemic and natural disasters, Japan has always stood beside Fiji with direct financial and technical support through JICA and the Japanese Government and also indirectly through the Asian Development Bank as its major shareholder.”
The Deputy Prime Minister also stressed that as a country prone to frequent natural disasters and adverse effects of climate change, we have to be always prepared.