Fiji’s Coalition Government today signed a JPY 5 billion (FJD 75 million) loan agreement with the Japan International Cooperation Agency (JICA) to bolster the nation’s disaster recovery and rehabilitation efforts.
The loan offered with a repayment term of 40 years, including a 10-year grace period and interest rate of 0.40% per annum can be accessed in the event of a ‘Declaration of Natural Disaster.’
It is part of the Standby Loan for Disaster Recovery and Rehabilitation Phase 2, following the first phase of JICA’s disaster standby loan initiated in 2019 and utilised during the response to Tropical Cyclone Harold.
During a ceremony at Ro Lalabalavu House, Fiji’s Deputy Prime Minister and Minister for Finance Professor Biman Prasad praised the long-standing relationship between the two nations.
“Japan has always stood beside Fiji with direct financial and technical support through JICA and the Japanese Government and also indirectly through the Asian Development Bank as its major shareholder,” Prasad said noting that JICA has become Fiji’s largest bilateral lender.
The funds will also support key policy reforms aimed at strengthening Fiji’s disaster governance, enhancing resilience, and improving preparedness.
Today’s announcement comes days after the Fiji Weather Office released the forthcoming tropical cyclone season projection which indicates that Fiji can expect up to two cylones.
