5 Mar 2009

Fiji interim govt looks at measures to improve fiscal situation

11:58 am on 5 March 2009

Deregulating the mahogany industry and securing offshore loans are some of the measures being considered to improve Fiji's fiscal situation.

In a press statement yesterday interim Prime Minister Commodore Frank Bainimarama said his government was acting decisively to address the existing economic challenges.

He pointed out that the global financial crisis, the recent floods, the expiry of the Multi-Fibre Agreement, the eroding preferential prices for Fiji's sugar, and the escalating fuel prices all contributed to the erosion of the country's foreign reserves.

And the Fiji Times online reports him saying the public must brace for more bad news given the further reduction in preferential sugar prices and the expected upward cost of fuel.

He has also asked Government departments to tighten expenditure to allow for more savings which will be used in capital projects, and asked a committee to explore further options.