The Asian Development Bank has signed a concessional loan agreement with Fiji of nearly $160 million.

This new agreement is expected to enhance Fiji’s public investment, supporting both climate adaptation and mitigation priorities, as well as improving the business and finance environment.

Deputy Prime Minister and Minister for Finance Professor Biman Prasad says this will also help reduce future debt service obligations.

Prasad states that this is the first-ever policy-based financing on concessional terms that the government will receive from the ADB.

“These concessional funding is also linked to good policy reforms and programs, which sets the agenda within the financial management framework. So the Ministry of Finance, and we as a government, have undertaken several reforms in the public financial management area.”

ADB Director General Leah Gutierrez emphasizes their commitment to supporting Fiji’s ambitious reform agenda.

“This program also builds on ADB’s previous policy baseloads in Fiji, which provided critical budget support, including during the COVID-19 pandemic. The program is closely linked with ADB’s other areas of engagement in Fiji, including our technical assistance in public financial and investment management and the finance sector.”

ADB also stresses the importance of this financing in advancing Fiji’s long-term development goals.