‘Debt to asset’ swap worth $8.8m
14 January, 2021, 11:45 pm
Prime Minister Voreqe Bainimarama (2nd from left) with Fiji Sugar Corporation Chief Executive Officer Graham Clark (left) in this file picture. Picture: FT FILE/REINAL CHAND
The Fiji Sugar Corporation executed a “debt to asset” swap with South Pacific Fertilizers (SPF) and the Sugar Cane Growers Fund (SCGF) worth more than $8.8 million in 2019.
This is according to FSC in its 2020 annual report.
Debt-asset swaps occur when debtors look to reduce debt by disposing of non-core assets.
The report read on October 17, 2019, FSC signed a binding agreement with South Pacific Fertilizers worth $13,305,000.
The debt-asset swap with the Sugar Cane Growers Fund worth $5,500,000 was signed on January 13, 2020.
SPF imports, blends and supplies fertiliser and weedicides to sugarcane farmers in Fiji. Government also provides a subsidy towards the fertiliser and weedicide usage.
The SCGF offers loans and financial assistance to sugarcane farmers in Fiji.
