ADB lends Fiji $473m to cushion price shocks

The Asian Development Bank (ADB) will provide Fiji with US$210 million (FJ$473 million) in loans to help cushion households and businesses from fuel and food price shocks linked to the Middle East conflict and strengthen the country’s preparedness for future disasters.

ADB President Masato Kanda said the funding reflected a responsibility to ordinary Fijian families.

"Readiness is a duty owed to every family whose livelihood can be upended by the next shock," Mr Kanda said.

"This $210 million package will help keep essential services running, protect people under pressure, and give the government the power to mobilize when every hour counts."

The package comprises a US$200 million (FJ$450 million) loan for policy reforms and a US$10 million (FJ$22.5 million) loan for disaster financing.

It is the second phase of the ADB-led Fiji Sustainable and Resilient Growth Program.

Fiji, like other Pacific island nations, imports nearly all its fuel. Regional analysts have warned that Fiji's annual fuel import bill could more than double because of the Gulf conflict, pushing up transport costs, electricity bills and grocery prices for ordinary Fijians.

The first phase of the programme helped Fiji modernise digital payments, improve tax collection and reform disaster response.

The new phase provides support for expanding access to finance, strengthening disaster risk management, digital transformation and fiscal sustainability, as well as providing faster access to emergency funding when disaster strikes.

ADB designed the programme with the governments of Australia and New Zealand, the European Union, the International Monetary Fund and the World Bank.