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Export Finance Facility The Export Credit Finance Facility (Pre/Post Shipment Finance) has been introduced by the Reserve Bank of Fiji (RBF) to assist exporters to obtain credit at concessional rates of interest to help improve international competitiveness and also to ensure the availability of credit to the export sector. The scheme is provided through the commercial banks with no recourse to the RBF which only provides 5% refinancing. Currently the maximum rate is set at 7% p.a.
This facility also includes financing for the construction of up-market hotels.
All producer - exporters, exporting to any destination, qualify to apply provided they satisfy the value added rules. Producers of certain traditional exports including sugar, molasses, gold and rough unprocessed sawn timber are not eligible to the export finance facilities.
For further details please liaise directly with the commercial banks or RBF. - Bank Bridging Finance - Trading banks offer short-term loans against the security of land or property.
- Insurance companies and the Fiji National Provident Fund - These institutions also engage in lending over longer terms but only on the basis of first-class security, usually in the form of real estate.
- Leasing Arrangements - Currently leasing of capital equipment is available through the Merchant Bank of Fiji, Credit Corporation and Fiji Development Bank. Generally the interest rate is higher as the loans are of higher risk.
- Factoring Services - this service is designed to help finance a company's working capital requirements. Offered by the National MBf Finance (Fiji) Ltd, it provides cash flow alleviation sales, ledger maintenance, credit management and collection services.
- Development Finance - Development finance in the area of Agriculture, Industry and Commerce is provided by the Fiji Development Bank, Agricultural lending term ranges from 3 to 15 years and Commercial lending tenure is 10 to 12 years. The average amount of long-term finance available from the Bank for Industrial and Commercial purposes is 65% of the project costs.
Please see RBF website for more details. |
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