RBF announces further relief for businesses
July 30, 2021 12:40 pm
The Reserve Bank of Fiji Board has announced further enhancements to its Disaster Rehabilitation and Containment Facility.
The changes include an additional funding allocation of $200million, a limited and tiered guarantee targeting MSMEs, streamlined debt recovery processes and the removal of related fees and charges by participating financial institutions for two years.
Governor, Ariff Ali says revisions to the Facility follow the announcements in the national budget that the Government will fully subsidise interest payments for loans disbursed under this Facility for the first two years.
Ali says during this grace period, no borrower will be required to make principal and interest repayments on their DRCF loan.
He adds the lending institutions have also agreed to support this initiative by waiving any related fees or charges.
The Governor says the changes to the Facility aims to help businesses maintain their operations and in turn supporting the employment of many Fijians during this pandemic.
Ali says these measures further supplement the Reserve Bank’s policy responses to support access to credit and local business activity.
He further clarified that more than one entity or subsidiary within a
business groups may qualify to access this facility.
Chair of Association of Banks in Fiji, Rakesh Ram while welcoming the announcement says the loan program will enable new ventures and existing businesses to access funds quickly to meet immediate
Ram says this will also encourage eligible entrepreneurs to approach their lending institutions to take advantage of the offer.