Fiji and Japan have agreed to an emergency loan of $200 million as part of COVID-19 response to revitalize the local economy.

Prime Minister Voreqe Bainimarama is expected to sign the loan agreement on Monday, signaling the largest single economic development contribution from Japan since the two nations developed bilateral ties.

The emergency loan support will enable the government to implement its planned activities for the financial year 2020 to 2021.

The funding is expected to direct resources for COVID-19 response such as strengthening health and medical services.

The $200m loan comes with concessions such as a 0.01% interest rate and 15 years of repayment period with 4 years grace period.