The government has signed a stand-by loan valued at $75 million with the Japan International Cooperation Agency to address immediate financial needs during the post-disaster recovery and rehabilitation phase.

Deputy Prime Minister and Minister for Finance Biman Prasad states that this initiative is timely, as Fiji expects one or two tropical cyclones to pass through its Exclusive Economic Zone during the cyclone season.

Prasad adds that the support also includes enhancing technical capacity in disaster preparedness and response.

“It will only be utilized once the Cabinet declares a major disaster if we get hit by a major cyclone or any other disaster and the Fiji government declares a state of natural disaster, this financing facility will activate. The funds will then be available, allowing us to respond in various ways, including providing immediate assistance to our people.”

JICA Resident Representative Satoshi Wakasugi states that the loan aims to reduce disaster risks through the implementation of JICA’s technical cooperation projects.

“Japan fully supports the implementation of the 2050 Strategy by enhancing cooperation under Japan’s new ‘Pacific Climate Resilience Initiative,’ which has three pillars, including strengthening disaster risk reduction and response capacity.”

The loan comes with a concessional term, offering a 0.4% interest rate and a 40-year repayment period, including a 10-year grace period.