[Source: Fiji Government/Facebook]

Fiji has received $378 million from the Japanese government that assisted in the disaster recovery, rehabilitation efforts and the responses to the COVID-19 crisis.

While presenting at the inaugural Japan-Pacific Islands Finance Ministers’ meeting during the Asian Development Bank Annual Meeting in

Georgia, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says the Japan’s International Co-operation Agency stands out as the largest bilateral lender to Fiji.

Prof. Prasad acknowledges Japan’s active role as part of the Indo-Pacific Strategy and emphasises the Pacific’s desire to remain an Ocean of Peace.

He also highlights that high debt is a major concern for Fiji forcing the government to implement challenging measures in the areas of taxation and domestic resource mobilization to help bring debt to a more comfortable level in the medium term.

He stresses that many countries are facing an unprecedented debt trajectory, and Fiji welcomes new approaches to debt restructuring, such as debt-for-nature swaps, and the Bridge Town initiative.

He also points out that financing for climate change adaptation in the Pacific region falls significantly short of the actual needs, with the costs being two to three times higher than other regions.

He emphasizes that without concessional loans and substantial grants, the construction of quality, climate-resilient infrastructure would not be possible.

He urges a broader exploration of financing options beyond concessional funding, including the loss and damage funds.

The Finance Ministers agreed to maintain close communication and committed to reconvening next year for further discussions.

The meeting which was attended by the Finance Ministers of Japan and 12 Pacific Island Countries (PICs), marks an important step towards the 10th Pacific Islands Leaders Meeting (PALM10) in July