Fiji and Japan signed an exchange of notes on Wednesday for a second stand-by disaster loan financing of around 72.0 million Fijian dollars (around 32.4 million US dollars), which will assist in any future needs for disaster recovery and rehabilitation.

According to Fijian Deputy Prime Minister and Minister for Finance Biman Prasad, the loan facility comes with a 40-year term, including a 10-year grace period, and carries an interest rate of 0.4 per cent per annum.

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He said the financing can be accessed once a ‘Declaration of Natural Disaster’ is declared by the cabinet on the advice of the National Disaster Management Council, Xinhua news agency reported.

Prasad also stressed that as a country prone to frequent natural disasters and adverse effects of climate change, Fiji has to be always prepared.