FDB CHIEF EXECUTIVE, SAUD MINAM DURNING A VIRTUAL MEETING. [SOURCE: FIJI DEVELOPMENT BANK]
The Fiji Development Bank has been holding virtual meetings with various community leaders including farmers and small businesses.
FDB Chief Executive, Saud Minam says the virtual meeting and discussion allows them to reach out to diverse groups to increase their awareness of their COVID-19 Recovery Credit Guarantee Scheme.
The Bank has been holding zoom discussions with these Fijians in the last two weeks to create awareness of the Government credit guarantee scheme for businesses.
Minam says they continue to engage grassroots farmers which include nine community leaders from across the rural-agro sectors in the Central and Western divisions as well as the maritime communities.
The FDB CEO adds his team has been helping businesses, individuals and farmers by assisting with information sessions, guiding them in applying for the loan digitally, and providing access to the much-needed financing during these times.
Nine new agricultural support programmes tailor-made to boost commercial agriculture has been announced.
Minister for Agriculture, Dr Mahendra Reddy announced the new commercial agriculture programmes which were earmarked to drive the sector forward, stating that the programmes were intrinsically linked to the vision of the new agriculture – “Grow Beyond”.
Reddy says through these new programmes, they are setting the foundations to expand commercial agriculture, help develop more youths, women, households, farmers and landowners as successful agricultural entrepreneurs while at the same time further increase exports, and increase households livelihood, income and quality of life and expand employment opportunities.
Dr Reddy also highlighted the new Intensive Dairy Farms programme was targeted at setting up two intensive dairy farms in the country.
“As part of this programme, the Ministry would provide high yielding Brown Swiss dairy cows, establish pasture and corn, provide start-up supplementary feed for a year and establish fencing to ensure no intrusion of animals that could infect these new breeds with TB and Brucellosis.”
Reddy also detailed the requisites to be eligible for the Hydroponics Kits – Nutrient Film Technique project which would include the setting-up of 400 plant size hydroponic systems at the recipient farmer’s field.
A total of 20 recipients who are set to benefit from this initiative will each receive a unit worth a value of $5,500.00.
He also briefly explained plans to assist an additional 20 farmers through the Covered Greenhouse (Protected Agriculture) programme stating that the Greenhouses would be set up to ensure a consistent and pest free supply of seedlings and vegetables.
Additionally, Reddy outlined the assistance under the Irrigation Kits programme, as the Ministry would be inviting Expression of Interests for 150 irrigation sets to be distributed to notable drier areas of Fiji for agricultural growth and expansion.
Each irrigation kit is estimated to cost around $2,000.
The BRED Group is carrying out capital increases of around $70m for its subsidiary BRED Bank Fiji to accelerate the development of its international network in the country.
BRED Bank Fiji Chief Executive, Thierry Charras-Gillot says the investment of new funds will also improve the Bank’s capital position and accelerate its growth in the Fijian market.
Charras-Gillot adds that the doubling of the capital investment by the shareholders demonstrates the growth potential of the Fijian economy.
The capital increase has also put the Bank in a better position to stimulate post-pandemic growth which will help in getting the economy back on track.
Minister for Economy, Aiyaz Sayed-Khaiyum says BRED Bank has played a positively disruptive role in the banking sector since its entry into the Fijian market nine years ago.
Sayed-Khaiyum adds that the injection of new capital is an important source of credit for Fijian businesses that will help fuel growth post the COVID crisis.
He says that it also demonstrates confidence in the Government’s management of the Fijian economy.
BRED Bank Fiji now owns around 7.5 percent market share, which has been grown steadily.
At least 80% of operators under the Fiji Hotel Tourism Association are ready to welcome international guests if borders reopen in December.
Chief Executive, Fantasha Lockington says this follows a thorough inspection to ensure that stakeholders are open under the COVID-19 safe protocols.
Lockington says operators will need to pass certain criteria.
“So ideally you need to start the process in writing and then there’s some physical inspection and physical training requirement that needs to be put in place and once they come on board and open up they can actually move to the second phase and get the confirmed compliance.”
Lockington says the target is for all tourism operators to open by December.
However, while the restart may not be easy for many, Tourism Fiji CEO Brent Hill is optimistic about things.Audio Player
“We will very much pick up learning from around the world and make sure that we are understanding the best practices around the world and make sure what happens on the ground is a fantastic Fijian experience and a safe one.”
With more than 200 members under the FHTA this will definitely mean that thousands of jobs will be restored if things are according to plan.
The Reserve Bank of Fiji says despite the domestic economy opening up under strict COVID-19 protocols, aggregate demand remains suppressed as more people have become unemployed or have had their wages and hours worked reduced.
Labour market conditions remain weak in tandem with the economic downturn.
As per the RBF Job Advertisements Survey, the number of jobs advertised plunged annually by 63 percent in the first half of the year, driven by reduced recruitment intentions across all major sectors except for the mining sector.
RBF says partial indicators of consumption spending such as Net VAT collections is down by 18.2 percent, new consumption lending by commercial banks has declined by 8.6 percent, new vehicle registrations are down by 8 percent and electricity consumption is down by 6.1 percent cumulative to June.
On the other hand, second-hand vehicle registrations rose by 120.4 percent over the same period.
Commercial banks’ new lending for investment purposes declined by 18.1 percent on an annual basis driven by lower lending to the real estate which is down by 20.3 percent and the building and construction sectors down by 12.1 percent.
The RBF says the economic uncertainty and mandatory COVID-19 protocols are anticipated to suppress investment plans further in the coming months.
Economic activity slowed significantly in late April and May as the spread of the Delta variant intensified in the country, worsening Fiji’s socio-economic situation however some pick-up has been noted from June as more businesses and citizens adapted to the COVID-19 environment.
The Reserve Bank of Fiji says resource-based sectors have managed to hold up production in the first half of the year.
Gold production expanded annually by 12.1% driven by mining efficiency and improved ore grade.
Timber production rose over the same period as pine logs increased by 128% and woodchips by 90.9% output on the back of buoyant foreign demand while mahogany production rose by 91.3%.
The RBF says while the sugarcane crushing data up to 19th July shows annual contractions for both cane by 27% and sugar production by 30.9%, yield is expected to pick up over the coming weeks after the guaranteed price of $85 per tonne was extended for the 2021 season.
Electricity generation is down by 7.2%, cement production down by 33.9% and visitor arrivals down by 95.9% recorded annual declines cumulative to June.
“The real estate sector transaction closing has been down significantly and demand for leasing down by over 50 % in the West,” quoted Arif, Director of One Agency Bayshore. Small businesses, especially restaurant owners, are closing their business with a significant decline of business post the second wave of Covid-19. The future of the majority of SMES is contingent on the rollout of government subsidized loans at 3.99%. This will allow an injection of working capital for businesses to sustain their business out of Covid-19.
HFC Bank has announced an all-women leadership at the Bank’s Corporate Banking division.
The Bank is the first in Fiji to have an “All Women” corporate leader, which is the most prestigious segment in the banking environment.
This team manages the large institutions and corporate customers for their overall banking relationship and requirements.
HFC Bank CEO, Rakesh Ram says they are extremely proud of their women leaders’ achievements and grateful that as Fiji’s only local Commercial Bank, they are leading the way in recognizing their women in top leadership roles, which has traditionally always been dominated by the male gender.
Ram announced that women leaders have been appointed to lead the Bank’s prestigious corporate banking division with all of them having immense experience and qualifications to lead the bank at the top.
Umesh Prasad is now the Head of Treasury & Corporate Services, Vandhana Sharma is Head of Corporate Banking West, Shilpa Jogia is holding the position of Corporate Manager Suva while Devika Prakash is Corporate Manager Suva.
The HFC Chief Executive says the Bank takes women’s leadership and growth very seriously and he is happy to see that there has been a quantifiable increase in women leadership including executive leadership positions.
The Reserve Bank of Fiji Board has announced further enhancements to its Disaster Rehabilitation and Containment Facility.
The changes include an additional funding allocation of $200million, a limited and tiered guarantee targeting MSMEs, streamlined debt recovery processes and the removal of related fees and charges by participating financial institutions for two years.
Governor, Ariff Ali says revisions to the Facility follow the announcements in the national budget that the Government will fully subsidise interest payments for loans disbursed under this Facility for the first two years.
Ali says during this grace period, no borrower will be required to make principal and interest repayments on their DRCF loan.
He adds the lending institutions have also agreed to support this initiative by waiving any related fees or charges.
The Governor says the changes to the Facility aims to help businesses maintain their operations and in turn supporting the employment of many Fijians during this pandemic.
Ali says these measures further supplement the Reserve Bank’s policy responses to support access to credit and local business activity.
He further clarified that more than one entity or subsidiary within a business groups may qualify to access this facility.
Chair of Association of Banks in Fiji, Rakesh Ram while welcoming the announcement says the loan program will enable new ventures and existing businesses to access funds quickly to meet immediate
financial obligations.
Ram says this will also encourage eligible entrepreneurs to approach their lending institutions to take advantage of the offer.
Bayshore Fiji Realestate Blog 