Aiyaz Sayed-Khaiyum [Source: Fijian Parliament]

The motion for government to guarantee Fiji Airways borrowings of $455 million has been approved by Parliament.

While speaking on the motion, Attorney General, Aiyaz Sayed-Khaiyum, says there is a need to extend the loan payment period of the national carrier due to the impact of the COVID-19 pandemic.

Sayed-Khaiyum says not want a cliff situation where all of the loan become payable at one point in time

“That will obviously put a cash flow pressure on Fiji Airways, so what actually happen Mr Speaker Sir, Fiji Airways has sort a time over which these loans can be paid and the period has in fact being extended.”

Sayed-Khaiyum says this move is critical to ensure that not all the loans mature in seven years’ time.

[Source: Fijian Parliament]

The Fiji Airways borrowing of $455m consists of a mix of domestic borrowing of up to FJD$191.1m and off shore borrowings of up to 117.1 million US Dollars which was valid for three years effective from May 30th last year.

[Source: Fijian Parliament]