The government has moved to boost the Fiji Sugar Corporation’s financial stability by endorsing a substantial increase in the guarantee limit for the company’s domestic borrowings.

The proposal which raises the existing guarantee from $95 million to $200 million will be tabled in Parliament for approval.

The government has a history of supporting FSC’s domestic and off-shore borrowings with the most recent guarantee of $75 million approved by Parliament in July 2022, covering the period from 1 August 2022 to 31 May 2028.

This limit was later increased to $95 million in May 2024.

The proposed increase will allow FSC to secure more affordable financing from local sources, easing the financial burden on the corporation.