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COVID-19 Response Budget: Government To Convert Loans Into Equity

Government is in the process of acquiring Fiji National Provident Fund and Fijian Holding Limited’s shares in the FSC to meet the legal requirements to convert government’s debt in FSC into equity.
27 Mar 2020 13:32
COVID-19 Response Budget: Government To Convert Loans Into Equity
Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum

Government will strengthen the balance sheets of the Fiji Sugar Corporation (FSC), PAFCO, Fiji Rice Limited, Food Processors Limited and Viti Corp Company Limited by converting their loans into equity.

Government is in the process of acquiring Fiji National Provident Fund and Fijian Holding Limited’s shares in the FSC to meet the legal requirements to convert government’s debt in FSC into equity.

Fiji Rice Limited has already confirmed they’ll inject $1 million into a rice planting scheme. There’s also an additional $1 million allocation towards the Ministry of Agriculture to bolster Fiji’s food security.

In addition, the Government is allocating $50 million to the FSC to fund cane delivery payments.

“Government is the only FSC shareholder making an additional financial commitment, not because it’s the easy route to take, but because we made a promise to cane farmers and we are keeping our word,” Attorney-General Aiyaz Sayed-Khaiyum said.

“However, moving forward, we need to keep a careful eye on the impacts on world sugar prices –– and make tough decisions if necessary.”

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