Corporation secures $20m overdraft facility

Picture: HFC Bank

Government is guaranteeing a $20 million overdraft facility given by HFC Bank to the Fiji Sugar Corporation.

This is according to the FSC’s 2020 annual report under “interest- bearing loans and borrowings”.

“The corporation has secured an overdraft facility of $20 million with HFC,” the report read.

“The facility is secured by Government guarantee and floating charge over all the corporation’s assets.”

The financial statement as at May 31, 2020, revealed FSC took out a loan of $42.4 million from the Czarnikow Group Ltd for operational expenditures and grower cane payments.

“This loan is secured through assignment of 2020 season contract and will be repaid through the second and third shipment of sugar for the 2020 season (financial year 2021).”

FSC obtained a $20 million loan from BRED Bank to assist with the upgrading work at the Lautoka, Rarawai and Labasa mills.

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