Airline borrowings – Motion to increase State’s guarantee from $191m to $241m

Fiji Airways planes at Nadi International Airport. Picture: REINAL CHAND/FILE

Parliament will today debate a motion by Attorney-General Aiyaz Sayed-Khaiyum for the House to approve the increase of a Government guarantee for Fiji Airways borrowings from $191.1 million to $241.1m.

The motion also calls for an increase in offshore borrowings from $US117.1m ($F242.2m) to $US142.1m ($F293.9m) — with the total guarantee ceiling increasing from $455m to $561.4m and “valid until the guaranteed facilities are discharged or fully settled”.

Mr Sayed-Khaiyum’s motion will also seek “that Fiji Airways be exempted from paying a guarantee fee”.

The A-G and Economy Minister will also put forward a motion that Parliament approves the increased Government guarantee from $170m to $250m for the 12-month period from March 1, 2021, to February 28, 2022, the guarantee period, for the Fiji Development Bank borrowings through the issuance of short and long-term bonds, promissory notes, term deposits, other short-term borrowings and any Reserve Bank of Fiji financing facility.

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