The Reserve Bank of Fiji yesterday announced the introduction of an Import Substitution Facility that will assist large scale commercial agricultural businesses to obtain credit at concessional rates of interest.
Governor of the Reserve Bank of Fiji, Sada Reddy said the new Facility is another of the RBF's initiatives to help Fiji's balance of payments.
He added that the Facility is expected to encourage domestic agricultural production and advance the competitiveness of local agricultural produce, resulting in a reduction in imports payments.
A total amount of $20 million is available through the scheme.
Eligible businesses may apply for concessional funding for the production after first satisfying to RBF that their business is import substitution related such as Fruit and Vegetables Root crops, Dairy produce and Beef.
However, businesses that produce items in which Fiji is already self-sufficient, such as pork, canned meat and chicken will not be able to access funds under the Facility.
The Facility is available for a maximum loan term of 5 years and is available through the commercial banks, licensed credit institutions and the Fiji Development Bank (FDB).
Meanwhile, Permanent Secretary for Agriculture, Colonel Mason Smith has welcomed the move by the Reserve Bank saying that this will certainly boost the morale of farmers, which will eventually have a positive effect on the economy.
Smith said they appreciate the show of confidence by the Reserve Bank of Fiji to reduce our imports and increase exports in the Agriculture sector, one of the mainstays of the economy.
