US$50m Support from the Asian Infrastructure Investment Bank for Fiji COVID-19 Response
SOURCE: ASIAN INFRASTRUCTURE INVESTMENT BANK
In a bid to help Fiji cope with the impact of the COVID-19 pandemic, the Asian Infrastructure Investment Bank (AIIB) has approved a US$50 million (FJ$106m) loan.
This will support the Government’s efforts to provide assistance to the formal sector, including small and medium enterprises and their employees, and members of the informal sector, including women microenterpreneurs, such as hawkers
Funding for Fiji is part of the Sustained Private Sector-Led Growth Reform Programme co-financed by the Asian Development Bank (ADB). The governments of Australia and New Zealand are also providing supplemental grant funding to Fiji.
“It is incumbent upon us to make sure the most vulnerable people have the tools they need to weather the effects of this public health challenge.
“AIIB is providing support to the Republic of Fiji to strengthen the country’s containment and treatment measures, and fiscal stimulus to help soften the effects of the COVID-19 pandemic,” said AIIB Vice President, Investment Operations, D.J. Pandian.
The loan—AIIB’s first project financing in Fiji—is expected to contribute to the government’s 2020-2021 budget, which includes spending on COVID-19 crisis measures with a particular focus on social and economic protection.
Besides the severe ramifications for public health and safety, the COVID-19 pandemic resulted in
■major disruptions to Fiji’s supply chains,
■trade flows and public finance, further affecting a domestic economy heavily dependent on the tourism industry.
In addition, Fiji had to deal with the impact of Cyclone Harold in April 2020, which caused damages estimated at around US$46.4m (FJ$99.07m) and affected more than 20 per cent of the population. The loan is part of AIIB’s COVID-19 Crisis Recovery Facility (CRF), which provides up to US$13 billion (FJ$27bn) of financing to both public and privatesector entities facing serious adverse impacts as a result of the pandemic.
As of August 13, 2020, AIIB’s Board of Directors has approved a total of 19 projects under the CRF, amounting to over US$6.16 bn (FJ$13bn) to support 15 members in navigating the challenges of these highly uncertain times.
AIIB is reviewing additional projects from its clients.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia.
Headquartered in Beijing, it began operations in January 2016 and have now grown to 102 approved members worldwide.
By investing in sustainable infrastructure and other productive sectors in Asia and beyond.
AIIB will better connect people, services and markets that over time will impact the lives of billions and build a better future.