27 Jun 2006

Concern about size of Fiji govt loans

10:03 am on 27 June 2006

There is concern about the extent of the Fiji government's borrowings from the Fiji National Provident Fund.

The finance minister, Ratu Jone Kubuabola, has revealed that government loans from the Provident Fund total more than 950 million US dollars, or more than half the total cash assets of the country's largest financial institution.

The Fiji Times reports that the concern has come from trade unions and employers represented by the Fiji Employers Federation, the Suva Chamber of Commerce and the Bank and Finance Sector Union.

The union's general secretary Pramod Rae, has warned that if the government defaults on the loans, the country's workers stand to lose their savings and pensions.