Fiji Sugar Corporation has today announced that it has secured a 2.4 million dollar loan from BSP Colonial.

In a market announcement, FSC said the 2.4 million dollars is to assist in financing its working capital requirement. Interest on the loan is 9.5 percent per annum.

Earlier this year cabinet announced that it had endorsed a Government Guarantee to the FSC to allow the FSC to borrow short term to meet its working capital requirements from 16th March 2010 to 31st May 2012.
 
The Prime Minister said that the Government, on 5th May 2009, had approved a government guarantee for $70 million, which expired on 31st May 2010.
 
Commodore Bainimarama had said that the FSC was seeking an increase to this Government guarantee to $120 million, to meet increased working capital deficit arising largely from high levels of capital expenditure associated with the Mill Upgrade Programme, and poor milling performance at the three larger mills due to commissioning issues associated with the newly upgraded plants.
 
The Prime Minister said that the FSC needed to borrow $30 million against the guarantee in early March 2010 to meet its working capital requirement and to make the third cane payment to the growers.
 
He said that an additional $20 million will be required in early part of the 2010 crushing season to meet FSC's operational expenditure and growers advance delivery payment before sugar proceeds for the 2010 crush begin to flow in.