The Reserve Bank of Fiji has announced the introduction of the concessional loan facility for businesses affected by tropical cyclone Tomas.

Governor Sada Reddy said that the loan facility has similar conditions to the Flood Rehabilitation Facility that was offered by the Reserve Bank after Fiji was hit by massive flash floods at the beginning of 2009.

He said that the maximum interest rate charged to eligible customers under this facility is 6.00 percent annually and the term of the loan is a minimum of 6 months with the possibility of extension up to 5 years.

Reddy is calling on all financial institutions to assist in the quick recovery of the economy, by assisting those affected financially by making temporary adjustments to repayments and to extend credit for replanting and business resumptions.

He had also requested the insurance companies to assess and settle insurance claims quickly.

Reddy said the total amount available under this loan facility is $20 million which will be offered through the commercial banks and Fiji Development Bank.

He said that businesses may apply for funds for replacement of cyclone damaged inventory, repair or replacement of cyclone damaged plant, equipment and machinery, restoration of cyclone damaged buildings including resorts and hotels and replacement of business vehicles damaged by tropical cyclone Tomas.

The Loan facility is effective immediately and is available until 30 June 2010.