MoU for sustainable development
THE Fiji Development Bank (FDB) has signed a memorandum of agreement (MoU) with the Agence Francaise de Development (AFD) and the Global Green Growth Institute (GGGI) to launch the Green Growth and Climate Finance Cooperation program in a move towards sustainable development.
Through funding and technical support from AFD and GGGI, the FDB will develop its loan products, origination and financing strategy for green and climate-friendly products and services, and enhance climate impact measurement and reporting.
Over the next three years, the program will also support the bank enhance its Climate Finance Strategy to complement the ramp-up of its adaptation and mitigation financing and develop resource mobilisation and risk management plans to meet expected demands for climate-related loan products.
“This MoU is very timely as we are about to embark on a new journey where we need to make sure our policies, procedures and processes are aligned towards sustainable finance,” FDB chief executive officer Saud Minam said.
“Given the support from AFD through GGGI, we will be able to get Subject Matter Experts to drive this initiative, which will help FDB in the short and long term.”
AFD Regional Director Virginie Bleitrach said institutions like FDB and AFD played an important role and will continue to in coming years to contribute to the fight against climate change, biodiversity loss or further social and financial inclusion.
GGGI Country Representative Fiji, Kiribati and Vanuatu Norbert Maass said they aimed to work closely with FDB to maximise the potential of the EURIZ facility.
The FDB and AFD have an existing portfolio guarantee facility under the EURIZ scheme, an EU-funded guarantee facility that targets underserved MSMEs in ACP countries.
The FDB needs to generate loans that align with the EURIZ criteria to realise the full benefits of that scheme.