15 Mar 2011

Economist says new high interest Fiji loan shows all time low confidence

7:33 pm on 15 March 2011

Fiji's interim Attorney General, Aiyaz Sayed-Khaiyum, has said the securing of new finance to repay a bond due, is a good indication of investor confidence in Fiji.

The interim administration has raised about 250 million US dollars in foreign bonds at an interest rate of 9 per cent.

The money was needed to repay a bond of 150 million US dollars due later this year and the extra will be used for infrastructure.

An economist at the University of the South Pacific, Wadan Narsey, says the high interest rate has attracted investors as he believes confidence in Fiji's economy is at an all time low:


I mean the real problem is the complete uncertainty in the minds of investors about arbitrary military decrees which seize assets, which stop them from going to court if they have a grievance against the government or any arbitrary decision.

Professor Narsey says investment is only likely to pick up if the interim government moves forward the date for elections from 2014.