Parliament has approved a government guarantee for the Fiji Development Bank.

The $220 million guarantee will support the Bank’s borrowings from March 2026 to February 2027.

Finance Minister Esrom Immanuel said the guarantee would allow the Bank to continue lending to priority sectors, including agriculture, housing, SMEs, sustainable energy and resource-based industries.

He also states that it will lower borrowing costs and attract investor confidence. Immanuel said FDB’s loan portfolio has grown to $557.5 million with nearly 90 percent directed to focus sectors such as agriculture and small businesses.

He noted that 30 percent of loans have gone to women entrepreneurs, supporting government efforts to boost economic participation. The Bank posted a consolidated profit of $14.2 million last year, up from previous years due to cost management, improved credit quality and higher income.

Prime Minister Sitiveni Rabuka said FDB fills gaps left by commercial banks.

He said the Bank supports businesses, farmers, and rural communities with medium and long-term financing. Rabuka called FDB a vital partner in national development and economic diversification, especially for sectors that face higher lending risks.

Opposition MPs Semi Koroilavesau and Faiyaz Koya supported the guarantee but urged caution.

Koya noted that contingent liabilities now account for 11.4 percent of GDP. He said the government must ensure funds target diversification sectors and maintain close oversight of loans.

Lands and Mineral Resources Minister Filimoni Vosarogo said FDB has been Fiji’s main development bank since 1967.

He said the Bank provides financing where commercial banks are unwilling. Vosarogo said the guarantee allows the Bank to expand lending, support rural development, and improve financial inclusion.

Immanuel added that FDB works closely with ministries like Agriculture and Trade to monitor projects and support rural and maritime communities.

He said the FDB’s average lending rate was around 5.5 percent but allowing savings deposits could reduce funding costs and increase flexibility.

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