The United States of America has shown its continued support for Fiji and the Pacific Islands region in efforts to promote and increase the duty free treatment of exports to the USA from the region.
USA also announced that a new regional office will be built in Suva, Fiji, to oversee US public diplomacy activities throughout the Pacific.
The sign of confidence provides a big boost to Fiji's efforts to rebuild its economy over recent months.
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Wednesday, May 9, 2007
Colonial National Bank Fiji joins in reducing lending rates
Colonial National Bank in Fiji has joined ANZ Banking Group Limited and Westpac Banking Corporation in reducing its lending rates. The rate reduction applies for all home and business loans.
The announcement sees the bank reducing lending rates for home loans and business banking by 0.25%.
The bank's variable rate on residential home loans falls from 12.25% to 12%.
The new rates will take effect from 19 June, 2007.
The announcement sees the bank reducing lending rates for home loans and business banking by 0.25%.
The bank's variable rate on residential home loans falls from 12.25% to 12%.
The new rates will take effect from 19 June, 2007.
Tuesday, May 8, 2007
Banks reduce lending rates
As I predicted earlier on this blog, banks will reduce lending rates from 1 June 2007. Following the lead by Westpac which reduced its lending rates from 1 May 2007 by 0.5%, ANZ Banking Group Limited announced that it will reduce all its lending rates by 0.25% from 1 June. This brings down ANZ's special 1-year fixed rate home loan to an interest rate of 9.75%.
The reduction of lending rates came about after an improvement in bank's liquidity positions when their reserve deposit requirements held on deposit with the Reserve Bank of Fiji was reduced by 1%.
Hopefully, the reduction will not cause another round of increases in the prices of homes and properties which have been at unsustainable levels over the past few years.
Due to a lack of demand and the high interest rates environment, home and property prices have started to come down in recent months.
With a continued improvement in banks' liquidity positions, I would expect lending interest rates to reduce further over the next few months.
Note : Check out the low rates for advertising on our other blog here.
The reduction of lending rates came about after an improvement in bank's liquidity positions when their reserve deposit requirements held on deposit with the Reserve Bank of Fiji was reduced by 1%.
Hopefully, the reduction will not cause another round of increases in the prices of homes and properties which have been at unsustainable levels over the past few years.
Due to a lack of demand and the high interest rates environment, home and property prices have started to come down in recent months.
With a continued improvement in banks' liquidity positions, I would expect lending interest rates to reduce further over the next few months.
Note : Check out the low rates for advertising on our other blog here.
Sunday, May 6, 2007
Fijian Holdings pays F$2million dividends
Fijian Holdings Limited (FHL) has paid F$2.046 million as interim dividends for the six months ended 31 December 2006.
The dividends is based on 10 cents per share for A-class shares and 5 cents per share for B-class shares and is the same as that paid out for the comparable preceding period dated 31 December 2005.
The interim dividend was based on FHL's operating results for the first six months of the current year in which the company made F$2.262 million profit after tax. Over the next six months, FHL has said that it faced a very tough operating environment.
The new Fiji Anti-Corruption Unit has said that FHL could face detailed investigations depending on the outcome of preliminary investigations by the Unit.
The dividends is based on 10 cents per share for A-class shares and 5 cents per share for B-class shares and is the same as that paid out for the comparable preceding period dated 31 December 2005.
The interim dividend was based on FHL's operating results for the first six months of the current year in which the company made F$2.262 million profit after tax. Over the next six months, FHL has said that it faced a very tough operating environment.
The new Fiji Anti-Corruption Unit has said that FHL could face detailed investigations depending on the outcome of preliminary investigations by the Unit.
Dubai and UAE investors interested in Fiji
Investors from Dubai and the United Arab Emirates (UAE) are interested in Fiji. One company is keen on setting up direct travel services to Fiji. Investors from Dubai and the UAE are interested in a whole range of areas for investment, particularly tourism related services.
The Interim Minister for Tourism says that an increase in foreign investment in Fiji would also be hinged on having tax laws and processes that were conducive to attracting investors, referring to problems that were faced by the hotel developers at Momi Bay recently where the Interim Prime Minister had to intervene to enable the project to continue after it had come to a halt when the hotel developers and the Fiji tax authorities had a disagreement with regard to having tax charged upfront for land sales at the hotel site.
The Interim Minister for Tourism says that an increase in foreign investment in Fiji would also be hinged on having tax laws and processes that were conducive to attracting investors, referring to problems that were faced by the hotel developers at Momi Bay recently where the Interim Prime Minister had to intervene to enable the project to continue after it had come to a halt when the hotel developers and the Fiji tax authorities had a disagreement with regard to having tax charged upfront for land sales at the hotel site.
Thursday, May 3, 2007
More demand for travel to the Pacific from Asia
A report in the Fiji Times today, Friday, 4 May 2007, highlights an increase in demand for travel to/through the Pacific from Asia. Figures quoted from the International Air Transport Association showed that Asia-Pacific aviation was up 6.9% in March 2007 while available seats grew at only 6%.
Singapore Airlines said the figures indicated that there was room for the airline to fly between Australia and the US, a route the Asian carrier is blocked from.
An approval of more airlines to service the Australia-USA route would mean more stopovers for Fiji which will bring us more tourists and opens up more air cargo and export links to Asian countries.
Before Air Pacific acquires the capability (aircraft capacity) to fly direct to Singapore and other Asian destinations which it plans to do, they could learn from large established airlines such as Singapore Airlines if these were approved to fly the Asia-Pacific route.
Singapore Airlines has also been an airline that has proven itself in terms of its high service standards - again lessons that Air Pacific could benefit from.
Singapore Airlines said the figures indicated that there was room for the airline to fly between Australia and the US, a route the Asian carrier is blocked from.
An approval of more airlines to service the Australia-USA route would mean more stopovers for Fiji which will bring us more tourists and opens up more air cargo and export links to Asian countries.
Before Air Pacific acquires the capability (aircraft capacity) to fly direct to Singapore and other Asian destinations which it plans to do, they could learn from large established airlines such as Singapore Airlines if these were approved to fly the Asia-Pacific route.
Singapore Airlines has also been an airline that has proven itself in terms of its high service standards - again lessons that Air Pacific could benefit from.
Wednesday, May 2, 2007
No Changes in Interest Rates by Reserve Bank of Fiji
The Reserve Bank of Fiji has made no changes in official interest rates after its Board Meeting held on Thursday, 26 April 2007.
Here is a copy of a press release issued by the Reserve Bank of Fiji on 27 April 2007.
"RESERVE BANK OF FIJI BOARD LEAVES INTEREST RATES UNCHANGED
The Board of the Reserve Bank held its monthly meeting on 26 April 2007 and decided to leave unchanged the Policy Indicator Rate (PIR) at 4.25 percent.
The Board noted that indicators for consumption, investment and credit growth suggest a decline in domestic demand. On sectoral basis, the performance of the tourism industry remains mixed while the sugar cane and other crops industries has been affected by the recent flash floods.
Annual credit growth continues to decline as the effects of the credit ceiling and other policy actions of the Reserve Bank take effect. This trend is expected to continue in the coming months.
The Governor and Chairman of the Board, Mr Savenaca Narube noted that downside risks to the economy include the threat of industrial actions by Trade Unions and the possible delay in reforms of key industries like Sugar. The Governor concluded that while the trade deficit remains, there are early signs that the monetary policy measures are dampening import demand.
Reserve Bank of Fiji"
Here is a copy of a press release issued by the Reserve Bank of Fiji on 27 April 2007.
"RESERVE BANK OF FIJI BOARD LEAVES INTEREST RATES UNCHANGED
The Board of the Reserve Bank held its monthly meeting on 26 April 2007 and decided to leave unchanged the Policy Indicator Rate (PIR) at 4.25 percent.
The Board noted that indicators for consumption, investment and credit growth suggest a decline in domestic demand. On sectoral basis, the performance of the tourism industry remains mixed while the sugar cane and other crops industries has been affected by the recent flash floods.
Annual credit growth continues to decline as the effects of the credit ceiling and other policy actions of the Reserve Bank take effect. This trend is expected to continue in the coming months.
The Governor and Chairman of the Board, Mr Savenaca Narube noted that downside risks to the economy include the threat of industrial actions by Trade Unions and the possible delay in reforms of key industries like Sugar. The Governor concluded that while the trade deficit remains, there are early signs that the monetary policy measures are dampening import demand.
Reserve Bank of Fiji"
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