AIIB approves USD50-million loan to Fiji for COVID-19 response

To help the Republic of Fiji cope with the impact of the COVID-19 pandemic, the Asian Infrastructure Investment Bank (AIIB) has approved a USD50-million loan to support the government’s efforts to provide assistance to the formal sector, including small and medium enterprises and their employees, and members of the informal sector, including women microentrepreneurs, such as hawkers

Funding for Fiji is part of the Sustained Private Sector-Led Growth Reform Program co-financed by the Asian Development Bank (ADB). The governments of Australia and New Zealand are also providing supplemental grant funding to Fiji.

“It is incumbent upon us to make sure the most vulnerable people have the tools they need to weather the effects of this public health challenge. AIIB is providing support to the Republic of Fiji to strengthen the country’s containment and treatment measures, and fiscal stimulus to help soften the effects of the COVID-19 pandemic,” said AIIB Vice President, Investment Operations, D.J. Pandian.

The loan—AIIB’s first project financing in Fiji—is expected to contribute to the government’s 2020-2021 budget, which includes spending on COVID-19 crisis measures with a particular focus on social and economic protection.

Besides the severe ramifications for public health and safety, the COVID-19 pandemic resulted in major disruptions to Fiji’s supply chains, trade flows, and public finance, further affecting a domestic economy heavily dependent on the tourism industry. In addition, Fiji had to deal with the impact of Cyclone Harold in April 2020, which caused damages estimated at around USD46.4 million and affected more than 20 percent of the population.

The loan is part of AIIB’s COVID-19 Crisis Recovery Facility (CRF), which provides up to USD13 billion of financing to both public and private-sector entities facing serious adverse impacts as a result of the pandemic. As of August 13, 2020, AIIB’s Board of Directors has approved a total of 19 projects under the CRF, amounting to over USD6.16 billion to support 15 members in navigating the challenges of these highly uncertain times. AIIB is reviewing additional projects from its clients.

Original source: AIIB