$200M Loan From Japan for COVID-19 Crisis
Japan and Fiji formalised a COVID-19 Crisis Response Emergency Support Loan yesterday, to the tune of $200 million.
It marks phase two of the emergency loan facility for Fiji through Japan.
Acting Prime Minister and Attorney-General, Aiyaz Sayed-Khaiyum, and Japanese ambassador to Fiji, Kawakami Fumihiro officiated at the event, during a signing ceremony in Suva.
“This emergency loan will help expedite Fiji’s recovery and economic revitalisation, as well as further strengthen friendship between the Governments and the peoples of Japan and Fiji,” Mr Kawakami said.
He said the sum was approximately equivalent to 10 per cent of Fiji’s total revenue of the fiscal year 2021-2022.
“This emergency loan has exceptional concessional terms, such as an interest rate of 0.01 per cent, 15-year repayment period, and four-year grace period,” he said.
“It marks another milestone in Japan-Fiji relations, while enhancing Fiji’s resilience against COVID-19.”
He said he formalised the initial emergency loan for Fiji in 2021, with Prime Minister Voreqe Bainimarama.
The harmonisation of the loan with the nineth Pacific Island Leaders Meeting (PALM9) was held virtually, last July.
“Despite the challenges of COVID-19 pandemic, Japan greatly appreciated the distinguished participation of the Prime Minister Bainimarama in the PALM 9,” he said
“The then Japanese Prime Minister and the Prime Minister Bainimarama successfully held a bilateral meeting during PALM9 and we are pleased that both countries have greatly enhanced friendship through these high level engagements.”
A key achievement of the PALM 9 is the Joint Action Plan for Strengthening Pacific Bonds and for Mutual Prosperity, known also as the KIZUNA bond policy, Mr Kawakami said.
“This emergency loan is in line with one of the priority areas of the KIZUNA policy, namely strengthening the foundation for sustainable and resilient economic development,” he said.
“Japan has contributed as well as formally committed to contribute a collective sum of $531million to Fiji.”
Mr Kawakami said the funding included:
the loan for Fiji Airways through Asia Development Bank, worth about $50 million.
the support through international organisations such as United Nations International Children’s Fund and United Nations Development Programme for the response against COVID19,
the provision of heavy machineries to the ministries of Fisheries, Agriculture and Waterways, and
the construction of the Tamavuai-wai bridge worth about $60 million.