Press Release No 27 –
Reserve Bank Rationalises Import Substitution and Export Finance Facility
Press Release No. : 27/2010
Date : 30 July 2010
The Reserve Bank of Fiji today announced the rationalisation of its Export Finance Facility and Import Substitution Facility into one Facility called the Import Substitution and Export Finance Facility (ISEFF). Under the ISEFF, all exporters are eligible to obtain credit at concessional rates of interest. In addition, businesses in the agricultural sector that are producing goods which result in a reduction in imports are also entitled to tap into the Facility.
Governor of the Reserve Bank of Fiji (RBF), Mr. Sada Reddy said that “The newly merged scheme was initiated to improve utilisation as there was limited uptake from the two Facilities thus far”. He added that there are a number of changes that make the Facility more attractive such as: –
- Reduced administrative requirements;
- Streamlined approvals process;
- No minimum eligibility funding amounts.
A total amount of $40 million is available through the Facility with loans limited to a maximum of $1 million per business. Lending institutions can borrow from RBF at 2 percent per annum and on-lend funds to eligible businesses at a maximum rate of 6 percent per annum.
The Facility is available for a maximum loan term of 5 years and is available through the commercial banks, licensed credit institutions and the Fiji Development Bank. Applications for funding under the Facility are subject to normal credit screening processes by respective lending institutions.
This Facility is effective immediately and more information, including eligibility criteria details can be obtained from the RBF.