Friday, October 08, 2010

The facts on the Qarase Loan that was spent by Bainimarama

Posted on fijitoday - October 8, 2010

If the $150 million “Qarase Loan” was bad then the $1Billion “Bainimarama Loan” will be crippling.

The illegal Government continues to call the US$150 million loan drawn in September 2006 the “Qarase Loan”.

Fact 1.
  • Only $200,000 of the loan was drawn down before the Coup. The rest was spent under the stewardship of Bainimarama.
Fact 2.
  • The devaluation of the Fijian Currency has made the repayment 20% more onerous than anticipated when borrowed. The repayment figure is now FJ$321 Million.
Fact 3.
  • Even including the negative effect of the world recession the economy has taken a hit of over $1 Billion from the 2006 Coup. The tax on this loss would have been available to repay the loan.
Fact 4.
  • In normal circumstance there would be a long list of willing lenders to refinance this loan to a stable democratic government. The Qarase Loan was financed by International Bonds that were freely available to a stable Fiji. Now only the IMF will even look at lending to Fiji and they are cautious reluctant lenders.
Fact 5.
  • The $1Billion loan now requested by the current illegal Government makes the “Qarase Loan” look like chump change and this “Bainimarama Loan” will haunt our children for many generations.

1 comment:

Anonymous said...

Not rocket science.

Of the 2 leaders currently vying for the top financial position - 1 is a sailor currently commanding an army - other a respected international merchant banker exiled in Vanuabalavu.