Suva (Fiji Times) – FIJI’S foreign debt stood at $2.96billion at the end of December 31, 2014.
This was revealed by the Fiji Bureau of Statistics in their recent update of Fiji’s international investment position.
While Fiji’s NIIP stood at -$6.78b at December 31, 2014, the value of overseas Fiji investments was well below the value of foreign investments in Fiji.
According to the Finance Ministry in its supplement to 2015 National Budget address, Government debt stood at $3.8b as at December 2013, equivalent to 51.4 per cent of gross domestic products, a decline of 53.4 per cent of GDP in the preceding year.
At the end of last year, it forecast about $4b of Government debt.
National Federation Party leader and shadow minister of finance Professor Biman Prasad said the NIIP was a nation’s stock of foreign assets minus its foreign liabilities.
“It is defined as the value of overseas assets owned by a nation minus the value of domestic assets owned by foreigners,” Prof Prasad said.
He said it was generally regarded as a nation’s balance sheet with the rest of the world and includes overseas assets and liabilities held by government, the private sector and its citizens.
“The amount reflects a higher value of foreign-owned assets and investment in Fiji than Fiji’s assets and investments abroad,” Prof Prasad said.
He said a large component of Fiji’s international liability in this case (74.3 per cent) was from direct investment.
“The bureau has not released a breakdown of this component, which would have indicated areas/sectors in which we have had increased foreign investment,” Prof Prasad said.
“Whether these investments have led to increased production in the economy and in which sectors and who are the investors?”
He said details would help people understand the meaning and impact on the economy and the people of Fiji’s Net International Investment Position.