Kumar on Reserve Bank Act amendment

Minister for Local Government Premila Kumar speaking in Parliament during the session of the committee of supply on Thursday, July 29, 2021. Picture: PARLIAMENT OF FIJI

For the fiscal policies of any country to be implemented effectively and swiftly, they need to be supported by complementing laws and regulations and these laws and regulations need to change to suit different situations as they arise.

Minister for Local Government Premila Kumar made these comments while speaking on the  amendment to the Reserve Bank of Fiji Act 1983.

She said the proposed changes to the Reserve Bank Act would help realign the Reserve Bank of Fiji’s (RBF) terms with those offered by commercial banks to their customers.

Mrs Kumar said this would improve confidence among commercial banks and other financial institutions such as the FDB and Housing Authority, in drawing funds from RBF facilities.

“The RBF has allocated $100 million in the previous years for the housing sector to assist first home owners,” she said.

“Housing Authority has drawn down close to $60 million out of  these facilities to provide loans to low and middle income earning first home buyers.

“These funds were lent at a very low rate, as low as 3.95 per cent. We would like to see commercial banks accessing more from this facility and the extended terms offered by the RBF will definitely encourage commercial banks towards this.”

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