Govt to fork out $813M for debts

www.fijivillage.com - 28 November 2009 The government will have to fork out an estimated $813 million in total to service its external and internal debts by 2011. This includes a loan secured through Global Bonds in 2006 amounting to US$150 million and the bond matures in 2011 which will require a full payment of the amount by 2011, thus exerting pressure on governments external debt financing. According to forecasts provided in the 2010 Budget Supplement, government is expected to pay around $516 million to service its external and domestic debts this year. In 2010, it is forecast that government will have to pay around $502 million, however come 2011 government will have to pay around $390 million for its external debt service and a total of around $813 million to service overall external and internal debts. Permanent Secretary for Finance John Prasad said they are exploring a number of options to ensure these debts are paid off on time. Prasad stressed that these debts have been inherited by the current government