The Ministry of Justice is committed to ensuring that the Bankruptcy Act 1994 is mordernized and aligns to global standards.
In doing so, the Ministry will hold its final round of industry consultations as part of its review of the legislation this week, from 7th to 11th April 2025.
The reform comes at a time when many small businesses and consumers in Fiji and across the world are facing financial difficulties due to rising interest rates and ongoing economic and climate challenges.
“The Ministry of Justice is privileged to collaborate with experts from the International Finance Corporation (IFC) on this important review, which seeks to encourage entrepreneurship while aligning insolvency laws with international best practices,” said Minister for Justice Hon. Siromi Turaga.
Updating the seven-decades-old Act is crucial, as Fiji has a large number of small unincorporated businesses. Effective creditor and debtor rights, along with a well-functioning insolvency system, are essential for financial system stability.
The IFC and the Insolvency and Debt Resolution team of the World Bank will provide technical support the Ministry of Justice as part of a broader initiative to promote inclusive and sustainable growth in the country.
"This reform is essential for preserving viable businesses while ensuring unsuccessful ones can exit the market efficiently,” said Stefano Mocci, World Bank Group Country Manager for Fiji. “A strong insolvency regime promotes responsible lending and strengthens financial system stability.”
The World Bank Group is supporting an initial diagnostic assessment, drawing from international experiences to develop solutions tailored to Fiji’s needs. This work will incorporate best practice standards from the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes, which includes new guidelines for the insolvency of micro and small businesses.
IFC’s work in Fiji is supported by the Government of Australia under the Vuvale Partnership, which aims to improve the competitiveness of the private sector and stimulate inclusive and climate-smart private investment.
The modernisation of Fiji’s Bankruptcy Act 1944 will strengthen the business environment, enhance financial stability, and align with global best practices. With support from international partners and public input, the reform aims to foster sustainable growth and economic resilience.