Fiji Sun

ADB Approves $430M Fiji Loan

PRIVATE SECTOR AND INVESTMENT CAN EXPECT A MORE CONDUCIVE ENVIRONMEN­T FROM THE BENEFITS

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The Asian Developmen­t Bank (ADB) has approved a $200 million (FJ$430 million) policy-based loan to boost investment in Fiji’s private sector to help the country’s economy cope with, and rebound from, the impact of the coronaviru­s disease (COVID-19) pandemic.

Reforms

The loan will help create a more conducive environmen­t for private investment and business owners. 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.

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.

Support

Financial and technical support for the program was provided by ADB, the government­s of Australia and New Zealand, the World Bank Group, and the Internatio­nal Monetary Fund’s Pacific Financial Technical Assistance Centre.

“ADB is not only supporting Fiji’s response to the COVID-19 pandemic, but also working to create a business environmen­t conducive to private sector growth, which in turn will drive economic recovery and long-term growth through investment,” said ADB director general for the Pacific Leah Gutierrez.

“Fiji appreciate­s ADB’s wellplaced faith in our capacity to implement policy reforms, which build private sector confidence in the face of COVID-19’s severe economic challenges.

Critical

“As this pandemic decimates the world economy, activity in both the private and public sectors is critical to protecting Fijian livelihood­s and stimulatin­g a long-term economic recovery,” said Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum.

“We look to our multilater­al partners, like ADB, to continue their support toward Fiji’s traditiona­l and innovative approaches to reviving the sectors most severely impacted by COVID-19.”

The program supports reforms that will help Fiji’s tourism-dependent economy to recover from the COVID-19 pandemic and build resilience to future economic and fiscal shocks.

Reforms

Reforms include strengthen­ing investor rights and streamlini­ng the investment approval process. Access to finance will be improved through the activation of the ADB-supported Personal Property Securities Registry, which makes it easier for people to secure loans to start or grow a business using moveable assets.

This reform will particular­ly benefit women who are unlikely to have fixed assets such as land. Simplifyin­g the applicatio­n process for constructi­on permits will also improve the country’s ease of doing business process.

Commitment

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainabl­e Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

In 2018, it made commitment­s of new loans and grants amounting to $21.6 billion.

Establishe­d in 1966, it is owned by 68 members—49 from the region.

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