SUVA, May 17 (Xinhua) -- The Fiji Development Bank (FDB) is planning to offer loans to more micro, small and medium enterprises (MSMEs) after receiving support from the French Development Agency (AFD).
The agreement signed between the FDB and AFD entails a substantial guarantee commitment of 7 million Fijian dollars (around 3.15 million U.S. dollars), funded by the European Union (EU), local media reported on Wednesday.
It will enable the FDB to expand its financing services for MSMEs, with a specific focus on such sectors as women-led enterprises, youth initiatives, healthcare, education, agriculture, digital enterprises, and social businesses to boost the economy.
Under the newly-inked agreement, financial institutions will benefit from a flexible, convenient, and attractively priced risk-sharing mechanism.
This mechanism aims to facilitate easier access to loans for MSMEs, ultimately contributing to the growth of the Fijian economy.
Fiji's Deputy Prime Minister and Minister for Finance, Biman Prasad, commended the FDB for its pivotal role in supporting this initiative.
FDB's Chief Executive, Saud Minam, while expressing gratitude towards the AFD and the EU, said the bank would support agriculture, small and medium enterprises and MSMEs, the three main segments in business that 94 percent of their customers belong to. ■