Commercial banks and lending institutions are now awaiting further information from the Reserve Bank of Fiji before they can implement the policies to counter the devaluation of the Fiji dollar by 20 percent last week.

Association of Banks President, Westpac General Manager John Cashmore said they need further data from the RBF on how these policies are to be enforced before changes in any lending and interest rates can be considered.

The RBF had announced that for interest rates, the Lending rates will be regulated as follows -

- the weighted average lending rates of banks and other lending institutions including FNPF will be kept at the level as at 31st December, 2008. This adjustment must take place within three months.

- the interest rate spread of banks must be reduced to 4 percent or below by 31st December, 2009. This policy will be reviewed in 12 months time.

- banks are directed to set up specialized micro-finance service centres in all their branches by January 2010. The Reserve Bank will support this set up by setting up a Micro-Finance Research and Development Unit headed by the Chief Manager.

The Reserve Bank also stressed that the Commercial banks are requested to play an active role in the economic recovery.