Fiji

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 15 April, 2020

General Information

  • $1 billion COVID-19 Stimulus Package announced together with FNPF
  • Fiji economy projected to contract by 4.3 percent this year
  • Debt to GDP ratio to increase to 60.9 percent in 2020. Economic rebound and stronger revenues expected following COVID-19 pandemic
  • Asian Development Bank to top up its previously-pledged funding of US$100 million by up to US$100 million more. World Bank offering US$5.5 million from its COVID-19 facility
  • Downturn in tourism industry expected to impact GDP by 38 percent
  • Tertiary Education Loan repayments suspended until 31 December 2020

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Fiji National Provident Fund

  • Effective from 1 April 2020 to 31 December 2020 reduction in employee and employer FNPF contribution from 8 percent and 10 percent to 5 percent respectively
  • Fijian workers in the hospitality sector who have lost their jobs or have had their hours cut since 1 February 2020 able to access an initial $1,000 from their FNPF accounts, with additional funds to be considered
  • Employees affected by the nationwide stipulated physical distancing requirements, along with employees in the Lautoka confined area who have been placed on leave without pay or had their hours cut, able to access an initial $500 from their FNPF accounts
  • Government to directly subsidise any shortfall in members balance

Reserve Bank of Fiji

  • Maintain the Overnight Policy Rate at 0.25 percent
  • Expand Natural Disaster and Rehabilitation Facility to include businesses affected by epidemics/ pandemics. Renamed Disaster Rehabilitation and Containment Facility
  • Total allocation for facility now $60million. Businesses affected by COVID-19 can access funds under this facility through commercial banks, licenced credit institutions or FDB at a maximum interest rate of 5.0 percent

Expenditure

  • Additional $40 million to enhance our health system’s response capacity
  • Additional $20 million to Education and Social Welfare respectively
  • Additional $1 million allocation towards Ministry of Agriculture to bolster Fiji’s food security
  • $50 million to the FSC to fund cane delivery payments
  • Additional $5 million to be added to the small and medium enterprises credit guarantee scheme

Other measures and sources

  • Informal sector in the lockdown areas entitled to one-off Government relief payment of $150 where holding a street trader or hawker license
  • Government to fund 21 days COVID- 19 leave for Fijian employees earning less than $30,000 who have tested positive for the virus
  • Fijians in the informal sector who tested positive for the virus to be paid a one-off sum of $1,000
  • Banks and hire purchase companies to offer six month deferral of loan repayments for Fijians who have lost their jobs or had their hours reduced. Also available to businesses
  • Banks to waive all charges on minimum balances in customer’s accounts and remove minimum purchasing requirement for electronic transactions
  • Fiji Investment Corporation Limited to be revived for equity injection into SMEs
    Conversion of Government loans to equity in Fiji Sugar Corporation, PAFCO, Fiji Rice Limited, Food Processors Limited and Viti Corp Company Limited
  • Government to acquire FNPF and FHL’s shares in the FSC
  • WAF to suspend all disconnections until 31 December 2020
  • EFL to match Government’s 50 percent subsidy to its subsidized customers
  • 20 percent pay cut for elected officials for the next six months
  • Pensioners monthly travel allowance reduced from $40 to $20