‘Debt to asset’ swap worth $8.8m

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.

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