The way forward for Microfinance in Fiji, 2009

In April 2009 the Reserve Bank of Fiji announced a number of new economic and financial measures.

These were the devaluation of the Fijian dollar by 20 percent; the adjustment of lending rates to the December 2008 rate; a reduction of the interest rate spread to 4 percent by the end of 2009; and, a directive to all banks to set up specialised micro-finance service centres in all branches by January 2010.

The RBF has committed itself to support this directive by setting up a Microfinance Research and Development Unit.

This FDC Briefing Note raises several issues related to the impact of this directive on commercial banks and other financial institutions and the implications for the microfinance industry and service levels in Fiji in the future