Parliament approves govt to guarantee $160M that FDB is going to lend to ordinary Fijians

Parliament has approved for government to give a guarantee of $160 million that the Fiji Development Bank is going use to lend to ordinary Fijians.

Attorney General Aiyaz Sayed-Khaiyum says this government guarantee will enable the Fiji Development Bank to continue the facilitation and implementation of government policy by lending to the essential sectors of the economy such as Agriculture, Manufacturing, Transport, Communications, Small and Micro Enterprises, Retail and Hotels.

The $160 million will be used by the FDB for short and long term bonds, term deposits and other short term loans. This guarantee is for 12 months from 1st March this year to 29th February 2020.

In his contribution, National Federation Party Leader, Professor Biman Prasad supported the motion and said the Fiji Development Bank should look at increasing the loans given to farmers considering the contribution of the Agriculture sector to the economy.

There were also suggestions from the Opposition for FDB to take its services closer to the people and also ensure that the deserving people got the loans.

SODELPA MP Ro Filipe Tuisawau supported the motion but questioned whether this guarantee would allow government entities such as FBC to loan from the Fiji Development Bank.

In his right of reply, Sayed-Khaiyum said it is not peculiar for FDB to lend money to government entities.

The motion was unanimously agreed to by parliament.