The Fiji Development Bank has partnered with the Agence Française de Développement (French Development Agency – AFD) through the issuance of the EURIZ guarantee, with the support of the European Union.
The two organisations today inked the ‘EURIZ Loan Portfolio Guarantee’ agreement that offers a flexible, convenient and attractively priced risk-sharing mechanism to financial institutions to facilitate loan access for micro, small and medium enterprises (MSMEs) with high development impacts.
The agreement will allow FDB to expand its MSME/SME financings – where the beneficiaries of this guarantee include MSMEs and SMEs with high developmental impact such as green SMEs, women, youth, health, education, agriculture, digital and social business.
Minister for Finance Professor Biman Prasad said that while FDB has the full support of the government, it is pleasing to see the bank engaging with international partners that would assist in reaching out to more people.
“This historic ceremony is the testimony of the development bank’s commitment to improving its services, creating easily-accessible financial solutions and collaborating with organizations that are on the same wavelength as FDB in terms of service delivery and innovative financial services.”
“I thank the EU and AFD for encouraging such investments in your partner countries. This collaboration will significantly add to FDB’s capacity to lend to MSMEs in Fiji.”
FBD chief executive Saud Minam said this is the first of its kind for the South Pacific and acknowledged AFD and the EU for its collaboration with the development bank.
Minam said the total amount of the guarantee commitment is approximately $7 million ($3M euros)
“This is a significant boost for Fiji’s economy, providing the much-needed avenue to further support the growth of small business. FBD is excited about this initiative, and we are now looking at further expanding our lending facilities for Agriculture, MSMEs and SMEs. As part of this growth strategy, we will be focusing on climate-related projects and promoting gender equality within the business community.”
Minam added that FDB understands the importance of sustainable development and are committed to supporting businesses that prioritize these values.