Remittances to Fiji fall in 2007

The Reserve Bank of Fiji has announced that remittances to Fiji fell by almost 30% to F$183.7 million in September 2007, from F$260.7 million in the same period the previous year. This was after remittances had grown dramatically from F$50 million in 1999 to F$320 million in 2006.

The Reserve Bank has not been able to "explicitly ascertain" the reasons for the fall. One of the reasons given is that more remittances could now be coming in through informal channels than the formal ones.

It is interesting to note that the Reserve Bank has not done a bit more to analyse the real causes for the fall in remittances.

Some of the ones I can think of include :

1. Due to the events of December 2006, more prudent people would be opting to keep their hard-earned funds offshore rather than bringing them into Fiji;
2. If most Fiji citizens working abroad are being paid in USD which is the most usual currency of payment that people prefer, then given that the USD has been relatively weak, this may have resulted in the reduction in conversion of earnings to Fiji Dollars;
3. Insufficient data has been collected from all points where remittances could be coming into the country to enable comprehensive analyses;
4. In the second half of the year when interest rates in Fiji has fallen sharply, again more prudent people would have preferred to keep their funds offshore in countries where interest rates have been higher e.g. Australia, New Zealand;
5. Rather than send hard cash into the country, people are probably buying items from abroad and sending those to Fiji as the purchase prices offshore maybe more cheaper.

These are just some reasons that can be looked at in more detail.

It would be interesting to look at the actual figures and trends for further analysis.

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Another new client : Amalgamated Telecom Holdings

We have just begun work with a new client, Amalgamated Telecom Holdings Limited (ATH). ATH has 100% ownership of other telecommunications companies in Fiji including Telecom Fiji Limited and ATH Technology Park Limited. ATH also owns 90% of Fiji Directories Limited.

Telecom Fiji, on the other hand, has 100% shares with Internet Services Fiji, Transtel Limited and Xceed Pasifika Limited. Telecom Fiji also owns 51% shares with Vodafone Fiji Limited.

For ATH, we are facilitating workshops for management and the Board and will help put together a new Strategic Plan for financial years ending March 2009, 2010 and 2011.

We are again using a Strategic Planning model that we have developed ourselves. Mr Nacanieli Rika, lecturer in Accounting and Finance, University of the South Pacific, will again be assisting us with this project.

Colonial National Bank Interest Rates (Updated 2.1.08)

Schedule of interest rates released by Colonial National Bank are as follows :

• Business Banking Base Rate - 10.20%;
• Residential Property Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.00%;
• Investment Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.00%;
• Retail Term Deposits : 9 months - 2.00%, 1 year - 2.00%, 1.5 Years - 2.00%, 2 Years - 2.00%, 3 Years - 2.00%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Westpac Interest Rates (Updated 2.1.08)

Schedule of interest rates released by Westpac Fiji are as follows :

• Business Lending Rate - 9.99%;
• Residential Property Loan : Variable Rate - 9.75%, 1 year Fixed Rate - 8.00%;
• Investment Loan : Variable Rate - 9.75%, , 1 year Fixed Rate - 8.00%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

ANZ Bank reduces rates further from 1 January 2008

ANZ Bank in Fiji will reduce interest rates on its lending products from 1 January 2008. Rates reduce by 0.5%. The new rates are as follows :

• Residential Property Loans : 1 year fixed rate, 8.00%; Variable Rate, 10.00%;
• Investment Property Loans : 1 year fixed rate, 8.00%; Variable Rate, 10.00%;
• Personal Loans : Secured, 11.70%; Unsecured, 14.20%;
• Business Index Rate : 10.50%.

For more information, pls call the ANZ Bank branch near you.

Westpac Interest Rates (Updated 3.12.07)

Schedule of interest rates released by Westpac Fiji are as follows :

• Business Lending Rate - 10.49%;
• Residential Property Loan : Variable Rate - 10.25%, 1 year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.25%, , 1 year Fixed Rate - 8.50%;
• Retail Term Deposits : 6 to less than 9 months - 1.25%, 9 months to less than 1 year - 1.75%, 1 year to less than 1.5 Years - 1.75%, 1.5 years to less than 2 Years - 1.75%, 2 years to less than 3 Years - 1.75%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.

Colonial National Bank Interest Rates (Updated 3.12.07)

Schedule of interest rates released by Colonial National Bank are as follows :

• Business Banking Base Rate - 10.20%;
• Residential Property Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Investment Loan : Variable Rate - 10.50%, 1 Year Fixed Rate - 8.50%;
• Retail Term Deposits : 9 months - 2.00%, 1 year - 2.00%, 1.5 Years - 2.00%, 2 Years - 2.00%, 3 Years - 2.00%.

Interest rates are on a per annum basis and may be varied by the bank without prior notice.