Q1.- Mr. Kaloumaira,
Could you explain to our readers in a general way,
what is the mission, function and main activities
of the Fiji Development Bank?
A1. The FDB is development institution owned
by the government of Fiji. Our vision is to be the
leading development financing institution in Fiji
and in the South Pacific and also to be a profitable
and self sustaining financial institution. We provide
finance, financial and advisory services to assist
in the economic development of Fiji and in particular
in the development of agriculture, commerce and
industry. Development banking in Fiji dates back
to the 1950's when the Agricultural and Industrial
Loans Board, the AILB, was established. In 1967
the AILB disappeared and all the assets and liabilities
were transferred to the Fiji Development Bank, which
commenced operations the following day the 1st of
July of the year 1967. Under the Fiji Development
Bank Act, the FDB received wider powers to facilitate
and stimulate the development of natural resources
in Fiji. The economic development of the rural and
agricultural sectors of the economy was given special
consideration, with emphasis on ventures that created
jobs, increased exports, utilized local raw materials
and substituted local products for imported items.
This is how the FDB began its long journey, developing
the Fiji economy, and improving the welfare of the
people in Fiji.
Q2.- Can you give us some examples of successful
projects that this Bank has financed in the past?
A2. We have the example with Soqoiwasa, a shoe-manufacturing
factory. This factory is the first Indigenous Fijian-owned
shoe venture of its kind. The Proprietor had planned
to establish his own business to provide a secure
and stable future for his young family. He had worked
eight years as a factory manager at Footwear Exporters
Limited factory, sufficient experience to start
the operations on his own. With the financial backing
of FDB he could open his outlet in Suva in 1995.
Growth has been at a steady rate and is expected
to expand progressively. Employees have also increased
to 40 compared to 4 when the business was established.
In order to anticipate the demand and subsequent
business expansion, the owner approached FDB for
further funding assistance in 2001.
(Please, feel free to add more examples).
Q7. The PM, Mr. Qarase, used to be the GM of
this bank before. What about you, how long have
you been in the Bank and what are the challenges
you have to face for the future?
A7. I have been in the bank for 26 years. Mr.
Qarase left in 1997 and I was appointed as GM. I
am also in the board of Fiji TV and Fijian Holdings.
Besides this, I am chairman of the Association of
Development Financing Institutions in Asia and the
Pacific. I studied in the USP and got my MBA in
England. My challenge now is to further develop
the potential that Fiji has in the tourism industry,
to try and help increase the utilization of the
Southern Cross Cable Network and to help the growth
of Fiji's economy as a whole.
(Please, add more information)
Winne cannot be held responsible for unedited
transcription.
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Q3.- The Fijian economy
needs to grow 5% each year to survive. What has
been the assistance of the FDB over the years to
achieve this task?
A3. Historically, we have been involved mainly
in the agricultural sector, particularly in the
sugarcane farming. But In 1975 we introduced a soft
loan scheme for indigenous Fijians. The scheme,
known as the Commercial Loans to Fijians Scheme
was a Government initiative to encourage indigenous
Fijians to enter the fields of commerce. Then, in
the 80's, the Bank diversified to industrial and
commercial lending shifting from its traditional
agricultural focus. In October 2000, its latest
soft loan scheme for communities other than the
indigenous community was introduced, it is known
as the Small Business Scheme. In April 2002 we implemented
the Seed Capital Revolving Fund (SCARF) to encourage
indigenous participation in areas like Eco-tourism,
fishing or forestry. We are not a commercial Bank
like the private ones that you can find in Fiji,
we do term financing so if someone wants to expand
capacity, to buy equipment, they can come to us.
Concerning export financing (…). (Feel free
to add more info about future plans to help the
growth of the economy)
(We had problems with the second side of the
tape, could not hear your answers.)
Q4.- What have been your efforts to improve the
situation of the FDB and what other projects would
you like to achieve during your management of the
Bank?
A4. This bank works closely with the Reserve
Bank (…) we have adopted provisions. To get
the confidence (…) audit by KPMG (…).
The FDB is the biggest in the region and better
managed (…), we have had profits in 2001 and
2002 (…). Maintaining a clean portfolio (…).
(Please, add more information)
Q5. If a Foreign Investor is looking for a local
partner to do business in Fiji. Would be the FDB
a good partner, what kind of assistance can Foreign
investors find in FDB?
A5. There is an equity scheme meant to assist
new projects and to make equity investments in projects
of national importance, therefore stimulating the
growth and development in the country. It is the
Shareholding in Commercial Ventures (Equity Scheme).
The shares are acquired by the Bank and are eventually
sold to existing shareholders or to the public once
the projects are established and operating profitably.
(Please, add more information)
Q6. How would you describe Fiji as an investment
destination?
A6. Fiji is a safe place, not only for tourism
but also as an investment destination. We have a
well managed well recognized internationally financial
system. The investors have access to major commercial
banks that have been present in Fiji for decades,
they have access to top of the edge communications,
there is political stability, etc. As in any other
country in the world, there are problems but there
is a low risk in the investments in Fiji. The Government
has now set up an institution called the Fiji Investment
Corporation that will invest in feasible projects
that do not find capital. The Fiji Trade and Investment
Board is doing a lot of promotions and a great job
in showing to the international business community
that Fiji has a lot to offer. The FDB itself is
a member of the Australia-Fiji Business Council,
contributing to the strengthen and improvement of
business relations with our major business partner,
Australia.
(Please, add more information)
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MR. ISOA
KALOUMAIRA