Fiji Airports (FA) said its $ 106 million loan program with the guarantee of the Australian Pacific Infrastructure Finance Facility (AIFFP) was undertaken “without needing or asking for a guarantee from the Fijian government.”
Political leaders Professor Biman Prasad, Mahendra Chaudhry and Viliame Gavoka this week criticized the FA for accepting the loan at that time.
“This facility was set up without the need or demand for a guarantee from the Fijian government,” FA President Geoffrey Shaw said, adding that it “has no exposure to currency risk”.
âFiji Airports has obtained this financing independently and exclusively as a stand-alone commercial facility.
âThe finance providers have well recognized the commercial strength of Fiji airports in a normal business environment, which in itself has enabled this transaction structure.
âThey understand and trust our ability and ability to both service debt and repay principal once we resume normal operations after international borders reopen. “
Shaw said negotiations for the loan began in July 2020.
âThis loan facility is a business venture of Fiji Airports for our previously committed and, to a greater extent, well under construction capital works projects.
“The loan facility provides certainty for the future well-being of Fiji airports as a major contributor to the Fijian economy.”