Business

Reduced lending rates will benefit Fijians

June 2, 2021 4:31 am

The Fiji Chamber of Commerce and Industry says the announcement by the Reserve Bank to reduce lending rates will benefit many struggling businesses.

President, Dr Nur Bano Ali says the announcement by the RBF to lend to the commercial banks, licensed credit institutions, Fiji Development Bank and Housing Authority at a rate of 0.25 percent will bode well for businesses.

“What they have said is the Bank can on lend that at a reduced interest rate of 3.99 percent, so it’s positive all the way. We do hope that the Banks will take it up this offer that the Reserve Bank has put out and use that facility to assist businesses”.

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Dr Ali adds the flow on effect will also benefit many Fijians employed in the business sector.

“Financing is a central component of a business, so if your cost of financing is reduced that allows you cash flow and you can look after your employees better and then you pass it along and it reduces the impact of a reduction on salary possibly and payroll cost.”

Dr Ali says this will create economic activity and is way towards economic recovery.