In it's efforts to increase exports and reduce imports, the Reserve Bank of Fiji has made $40 million available for businesses to utilize through a more streamlined Import Substitution and Export Finance facility.

RBF Governor Sada Reddy has revealed that they have now merged the Export Finance and Import Substitution facilities into one entity to improve utilization as there was limited uptake from the two facilities so far.

Reddy said businesses in the agriculture sector that are producing goods which result in the reduction of imports are also entitled to tap into the facility.

He said the changes makes the facility more attractive as there will be reduced administration requirements, streamlined approvals process, and no minimum eligibility funding amounts.

With a total amount of $40 million, loans to businesses will be limited to a maximum of $1 million per business and lending institutions can borrow from the RBF at 2 percent interest per annum and lend funds to eligible businesses at a maximum rate of 6 percent per annum.

Reddy said the facility is available for a maximum of five years and is available through commercial banks, licensed credit institutions and the Fiji Development Bank.

The new facility is available immediately.

Story by: Roneel Lal