14 Jun 2010

Concerns over Fiji's repayment of US$150 Million loan

7:30 am on 14 June 2010

The Governor of Fiji's Reserve Bank has admitted there are concerns whether the country can afford to repay a loan due in September next year.

Speaking at a conference over the weekend, Sada Reddy said the biggest challenge facing the interim government is how to raise investment and exports.

Fiji Village reports Mr Reddy says the total contingent liabilities of the government stood at nearly a billion US dollars billion in 2009.

He says a number of people have been commenting on the 150 million US dollar bond issued in September 2006 that is due for repayment in September next year.

Mr Reddy says the concerns as to whether Fiji has the capability to repay the loan are justified.

However, he assures that the government and the Reserve Bank are actively exploring all possibilities to meet this repayment.