Talks Underway to Write Off Interest From $100M Exim Bank Loan

Interest on the more than $100million Exim Bank of India loan owed by the Fiji Sugar Corporation (FSC) will be written off.

Minister for Sugar and Multi-Ethnic Affairs Charan Jeath Singh said this would be with a 15-year term given to pay off the principal amount.

He said discussions were underway with the Indian government on the proposal and term timeframe for repayment.

With the engagement of the Minister for Finance, Biman Prasad, they had already facilitated dialogue with the Indian government.

“I have been notified that the Prime Minister, Sitiveni Rabuka, may be visiting India after the Indian General Election this year,” Mr Singh said.

This, he added, would present the opportunity to enhance talks on the subject with the newly elected Prime Minister of India.

Minister for Sugar and Multi-Ethnic Affairs, Charan Jeath Singh. Photo: Ronald Kumar

However, Mr Singh said the Indian government would not able to do this conversion.

“Other countries in Africa have taken a similar loan from the Exim Bank, so if we get approval, it will set a precedence for them to follow suit,” he said.

“The Indian government counter proposal is to write off the interest on the principal amount owned until date.

“But, they (Exim Bank) will nullify all the interest part or block it from charging any further interest, so we will only pay principal.”

Mr Singh added, they were on the right track with the many developments planned.

The FSC Labasa Sugar Refinery, restart of the Penang Mill in Rakiraki, ethanol plant setup to generate income through fuel sale to large commercial aviation sectors are some ventures FSC is looking at for revival.

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