ADB to lend loans of up to 200 million dollars

By: Cheerienne Wilson

 

Screen shot 2016-01-19 at 7.17.50 PMThe Asian Development Bank is all set to lend Fiji just over 2 hundred and 40 million dollars between 2016 and 2018 for various projects.

In addition, just over 2 million dollars will be provided in technical assistance to Fiji over the next two years.

The Asian Development Banks country operations plan for Fiji outlines where the ADD will pour in money as loan to us starting this year and ending in 2018.

In this document, the ADB praises Fiji’s economic growth and its debt management policies.

The ADB says current strong growth of over 4% per annum has been driven in part by appropriately expansionary fiscal policies, with expenditure increasing from 28% of gross domestic product in 2012 to 36% in 2015, adding the economic outlook for Fiji remains positive.

The ADB has outlined the programs in which it will provide loans to Fiji…

They are $67 million this year for an Urban water and sanitation upgrade project. In 2017, $25 million will be provided for sustaining private sector led growth reform program and another $75 million for Transport infrastructure. In 2018, $75 million will be provided for another two projects, they are sustaining private sector led growth reform program and electricity.

The ADB says Fiji is carefully managing its external debt obligations.

Noting in September 2015 the government successfully executed a $200 million bond issue to repay a $250 million global bond due to mature in March 2016.

The coupon rate of 6.6% compares favorably with the rate of 9% for the original bond. The government is now keen to explore a number of debt management options, including borrowing from development partners to support reform efforts and allow Fiji to refinance the new bond when it falls due in 2021.

The ADB has engaged with Fiji since the country became a member in 1970, committing a total of $417.million in loans and $32 million in technical assistance.

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