FNPF holds $3.5b in Government bonds
16 October, 2021, 10:03 am
The Fiji National Provident Fund held $3.54 billion worth of government bonds, making the Fijian Government its largest bond debtor, revealed the 2020-2021 annual debt report released by the Ministry of Economy this week.
Out of the total $5 billion government bonds debt, 70.8 per cent was held by the superannuation fund.
A bond is a type of investment where the FNPF lent money to Government and in exchange Government paid FNPF interest in equal amounts throughout the life of the bond until the amount borrowed was paid back along with the final interest payment.
Insurance companies in Fiji held $770 million worth of Government bonds while the Reserve Bank of Fiji held $365 million.
Commercial banks and “others” held $325 million worth of government bonds in 2020-2021, stated the debt report. Commercial banks held $300 million in Treasury Bills.