NEWS

Prime Minister: $20 Million Loan To The TLTB Paid In Full

The $20m interest free loan was issued by the Government to the Board in 1989 as part of its plans to accelerate the participation of Fijians in business.
06 Apr 2019 10:59
Prime Minister: $20 Million Loan To The TLTB Paid In Full
Prime Minister Voreqe Bainimarama.

Government’s $20 million loan to the iTaukei Affairs Board has been fully repaid confirmed Prime Minister Voreqe Bainimarama in Parliament yesterday.

The $20m interest free loan was issued by the Government to the Board in 1989 as part of its plans to accelerate the participation of Fijians in business.

The iTaukei Affairs Board had used the proceeds from the loan to buy 20 million B- class shares with par value of $1per share from Fijian Holdings Ltd (FHL). However, that loan was converted to a grant by the SVT Government in 2002.

Mr Bainimarama said, in 2010, the Government decided that the $20m issued to the Board should remain as a loan from Government and needed to be repaid.

“The annual dividend payable by FHL to the iTaukei Affairs Board was used to make the loan repayment to FHL,” Mr Bainimarama said.

He added the arrangement was that the iTaukei Affairs Board and iTaukei Fund will not receive any pay back dividends from FHL until the $20m is fully paid together with the interest.

“In 2013, the loan arrangement with FHL was fully settled by the iTaukei Affairs Board,” he said.

“The end result is that Government finances have been respected, more responsible financial measures have been developed and the loan has been fully repaid.”

Edited by Percy Kean

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