AIIB Extends $50M to Support Fiji’s COVID-19 Recovery
The Asian Infrastructure Investment Bank (AIIB) Board of Directors has approved aUSD50-million loan under AIIB’s COVID-19 Recovery Facility (CRF) to help the Government of Fiji restore fiscal sustainability and promote inclusive climate-resilient economic growth amid the ongoing spread and impact of COVID-19.
Tourism-dependent countries like Fiji have been particularly hard-hit by the pandemic, as their economies have been adversely affected by global travel restrictions.
Being heavily reliant on the tourism sector, the government’s spending has been curtailed by constrained fiscal space because of the sharp dent in economic activities due to successive outbreaks and related restrictions on movement and business activities across the Pacific Island archipelago.
Co-financed with the Asian Development Bank, AIIB’s support for Fiji’s Sustainable and Resilient Recovery Program incorporates a component of resilience building against these external shocks that could easily derail a successful recovery.
The Program is expected to help the Government of Fiji promote social protection and economic resilience, as well as help mitigate economic disruption and prevent long-term damage to the country’s productive capacity, including any potential impact to physical and human capital within Fiji’s economy.
It will also assist the government in systematically mainstreaming resilience into its budgeting and decision-making processes.
“AIIB is providing support to Fiji’s position in alleviating government fiscal pressures by helping them strengthen the country’s efforts to boost health system readiness, protect livelihoods and provide economic relief for affected businesses,” said AIIB Director General of Infrastructure Investment Department (Region 1) Rajat Misra.
Misra added: “This program aligns with our CRF’s focus on enhancing pandemic response, preparedness, and recovery, and it is incumbent upon AIIB to support our Members and their most vulnerable people get through this public health challenge.”
The Program is AIIB’s second financing program for Fiji. In 2020, AIIB provided its first Policy-based Loan to the Government of Fiji for the Sustained Private Sector-Led Growth Reform Program. To date, AIIB has approved USD100 million for the country.
The loan is part of AIIB’s COVID-19 Crisis Recovery Facility, which provides up to USD20 billion of financings to both public and private-sector entities facing serious adverse impacts as a result of the pandemic.
As of Sept. 14, 2022, AIIB’s Board of Directors has approved a total of 52 projects under the CRF, amounting to over USD12.17 billion to support 26 Members navigate the challenges of these highly uncertain times.
