Medium term fiscal strategies

THE Reserve Bank of Fiji is working closely with several entities that have shown interest in providing credit bureau services for the Fijian market.

This was revealed during the 2017/2018 National Budget announcement as part of the government’s medium term fiscal strategy.

The Fair Reporting of Credit Act became effective on May 27 last year after the Data Bureau was shut down.

Meanwhile according to the 2017/2018 Budget Supplement work on the financial sector development plan is expected to continue until 2025 to strengthen the domestic financial sector and enhance its contribution towards growth.

It said the overarching objective of the plan was to lay the building blocks for transforming Fiji into a regional financial hub in the future.

Some of the key elements of the plan include capital market development, financial inclusion, and SME development.

In a bid to increase financial inclusivity a new five-year Financial Inclusion Strategic Plan (2016-2020) has been finalised with a specific focus on ensuring more Fijians have access to financial services, and promoting the use of modern technology to deliver financial services in a cost effective manner.

Furthermore the Capital Market Development Master Plan (2016-2025) maps out strategies for developing the three main segments of Fiji’s capital market i.e. the stock market, the debt market and the Unit Trust Market.

Plans are in place to continue to raise awareness on benefits of these markets to businesses and investors, and reinforcing the legislative environment to promote more innovation and diversity in Fiji’s financial products.

As far as the draft National Payment System Bill is concerned a review is in progress.

This legislation will provide the regulatory framework for integrating payment systems across all financial institutions in Fiji. This would improve the efficiency and security of inter-bank transactions, as well as other transactions linked to the ‘national switch’.

One of the other medium term fiscal strategies include import substitution and export finance facility which would continue to provide loans at concessional interest rates to promote investments in exports, import-substitution and renewable energy.

As of April 2017, the facility issued $89.2 million loans, out of which $29.3m are cleared by debtors.

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