Cabinet has approved the write-off of $200.2 million owed by the Fiji Sugar Corporation.

The FSC’s 2024 annual report stated that the decision was made by the Cabinet on July 15, 2024.

“This debt forgiveness by the Government is expected to significantly enhance the corporation’s liquidity and financial position,” the report stated.

“Management is currently assessing the full implications of the debt write-back on the corporation’s future financial position and performance.”

FSC states the corporation has been incurring significant losses during recent years.

“The corporation has debt repayment commitments amounting to $156.1 million during the financial year ending May 31, 2025.

“Furthermore, the corporation requires further funding to meet its working capital requirements, ongoing capital expenditure and fund the operating losses.

“Given the financial position and the debt levels of the corporation and recurring losses being incurred by the corporation, these factors indicate that without Government support, the corporation will not be able to continue as a going concern.”