SUVA, March 26 (Xinhua) -- The Reserve Bank of Fiji (RBF), the country's central bank, will expand its Natural Disaster and Rehabilitation Facility to include businesses affected by pandemic and rename it the Disaster Rehabilitation and Containment Facility.
RBF Governor Ariff Ali said in a statement on Thursday that the Fijian economy was in unchartered waters and heading for a recession this year, so they were coming up with measures to assist the Fijians.
Ali said the COVID-19 pandemic has led to the shutdown of tourism activities and transmitted significant negative knock-on effects to the broader economy on the island nation.
All businesses affected by the COVID-19 pandemic can access funds under this facility through their respective commercial banks, licensed credit institutions or the Fiji Development Bank (FDB) at an interest rate of up to a maximum of five percent, he added.
Ali said the country's financial conditions remain accommodative with ample liquidity, stable interest rates and modest credit growth. The commercial banks reduction in interest rates and various other reprieve measures should support businesses during this downturn.
Fiji's annual inflation was registered at a historic low of -3.0 percent in February while foreign reserves were sufficient to cover 5.7 months of retained imports of goods and services. The overnight policy rate remains at 0.25 percent.
