Business

Government guarantee of $170m approved

May 26, 2021 3:41 pm

Fiji Development Bank in Suva.

Parliament has approved a $170m government guarantee for the Fiji Development Bank with a .075 percent fee on the cumulative utilized guarantee credit.

This follows a lengthy debate in Parliament where the Minister for Economy highlighted the purpose of the guarantee and how it will assist the country.

Minister for Economy, Aiyaz Sayed-Khaiyum says the government guarantee will provide a lifeline for many businesses and other sectors battling the impacts of the COVID-19 pandemic.

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“I think some of the members of the opposition have also said and others from our side have also said that it gives FDB the capacity to go out and raise funds in the market and also lend. We do agree that we need to spur on investment, we need to spur on consumption and we need to ensure small businesses stay alive.”

The Minister for Economy says the funds will also enable continued facilitation and implementation of government policies by lending to the essential sectors.

The guarantee also ensures that FDB lends to resource-based sectors such as agriculture and assist Fijians in the formal and informal sectors.