Talks are now progressing between the interim government and officials from the Chinese government in relation to a huge soft loan from China to assist in building low cost housing and upgrading Fiji's rural infrastructure.

The consular of the Embassy of the People's Republic of China in Fiji Fei Ming Xing said a total of $3 billion in Chinese currency had been allocated by the Chinese government for soft loans to the Pacific region.

Xing said he is not aware whether Fiji has made the loan application but talks are definitely underway.