ADB provides US$200M loan to Fiji to help boost the private sector

The Fijian Government and the Asian Development Bank have today signed an agreement for a US$200 million loan that is expected to boost Fiji’s private sector to help the country’s economy cope with, and rebound from, the impact of the COVID-19 pandemic.

While signing the loan agreement, Asian Development Bank’s South Pacific Sub-regional Office, Regional Director, Masayuki Tachiiri says the loan is expected to create a more conducive environment for private investment and business owners.

This is the final phase of the Sustained Private Sector-Led Growth Reform Program.

Tachiiri says it will also support reforms to improve the management of public finances and strengthen the performance of state-owned enterprises, which will have benefits for the private sector.

He adds the loan has low interest rates and is payable in 15 years.

Tachiiri says the assistance is the third phase of a program developed in partnership with the governments of Australia and New Zealand, the World Bank Group, and the Asian Infrastructure Investment Bank.

Meanwhile, Minister for Economy Aiyaz Sayed-Khaiyum says the loan will help in propping up Fiji’s foreign reserves and increasing liquidity.

Sayed-Khaiyum says the ease of doing business has been enhanced with the removal of business licenses and stamp duties and with the tax reforms.

He says Fiji has done a number of reforms including in the investment environment area.