[File Photo]

Government debt outstanding reached $10.8 billion at the end of October 2025, reflecting a slight increase of 0.5 percent over the previous quarter and a 2.3 percent rise compared to the same period last year.

According to the Government Debt Report for Quarter One of the 2025–2026 financial year, government debt stood at 73.8 percent of Gross Domestic Product, with projections indicating a rise to 79.8 percent by the end of the current financial year.

The report indicates that domestic debt continues to account for the larger share of government borrowings, making up 65.6 percent of the total debt stock, or $7.1 billion.

External debt accounted for the remaining 34.4 percent, amounting to $3.7 billion.

During the quarter, total new borrowings reached $211.4 million, largely from domestic sources.

External borrowing during the period remained limited.

At the same time, government debt servicing totalled $303.1 million, comprising $176.2 million in principal repayments and $126.9 million in interest payments.

The Ministry of Finance says debt servicing continues to place pressure on government finances.

The report also outlines financing agreements signed with development partners during the quarter.

In September 2025, loan and grant agreements were finalised with the Asian Development Bank for the Healthy Oceans and Water Security Improvement Project, valued at approximately $376 million.

The project focuses on strengthening resilient water supply services and protecting marine ecosystems in the Greater Suva Area.

In October 2025, agreements were signed with the World Bank’s International Development Association for the Pacific Healthy Islands Transformation Project, valued at approximately $224 million.

The project aims to improve access to quality health services, with a focus on non-communicable disease management.

The Ministry of Finance says discussions also progressed during the quarter for additional concessional financing with several development partners to support trade facilitation, health, and agricultural projects.

The Ministry maintains that government remains focused on debt management while ensuring funding is available for priority development initiatives.

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