FDB provides sustainable assistance to cane farmers
September 12, 2019 12:30 pm
The Fiji Development Bank thoroughly scrutinizes loan applications by sugarcane farmers before any are approved.
This was clarified by FDB Chief Executive Mark Clough while presenting FDB’s 2018 Annual Report to the Parliamentary Standing Committee on Economic Affairs.
Committee Member Inosi Kuridrani questioned what systems are in place to know which farmers are eligible for funding through FDB.
“But my worry, my concern is this, because these cane farmers also have access to government funding that includes their farm development cost, machinery, everything that includes the management of the cane farming. The farmers also have access to the Cane Growers Fund, How does the bank appraise the farmers eligible for funding.”
Fiji Development Bank CEO Mark Clough then stressed that they have stringent assessments and processes in place.
“So in our analysis of funding for cane harvesters we don’t just look at what proportion we have to fund, we look at how many cane harvesters are there in that particular area. Are you going to be cutting the market for other cane harvesters that we or others have financed? So we are quite particular about making cane harvesting and cane growing sustainable in that respect.”
FDB represents 98 percent of the market share in terms of loans in the Sugar Industry as of June 2018.