ABIF eases access to stimulus package

The Association of Banks in Fiji (ABIF) will ensure its members work with the textile, clothing and footwear industry to ease accessibility of funds from the Import Substitution and Export Finance Facility (ISEFF).

ABIF chairman Rakesh Ram’s comments followed concerns from the Textile, Clothing and Footwear Industry Council of Fiji (TCFICF) over difficulties members faced in accessing the Reserve Bank of Fiji’s (RBF) $300 million loan facility.

Mr Ram acknowledged the council’s concerns saying member banks would work with the sector to mutually resolve issues.

In an earlier report, TCFICF president Mike Towler said the processes involved in accessing the ISEFF funds through commercial banks, were difficult to comply with.

“Those few members who have been able to acquire finance via this facility find that the interest rate offered via the Commercial Banks is not competitive,” Mr Towler said. RBF Governor Ariff Ali said the funds were made available at one per cent to commercial banks.

Mr Ram said individual commercial banks had their respective credit policies.

“All credit facilities including RBF stimulus packages are subject to individual Banks’ credit criteria.

“The banks take all the credit risks including funding available through RBF.”

RBF said exporters had utilised $115 million of the $300 million ISEFF allocation.

“This is reflective and a clear validation of commercial banks support to this industry in conjunction with RBF,” Mr Ram said.