The SPC announced that Fiji is requiring commercial banks to use two per cent of deposits and similar liabilities to provide loans to the renewable energy sector as a means of shielding their economies from the impacts of volatile oil prices.
17 February 2012: The Secretariat of the Pacific Community (SPC) has announced that the Reserve Bank of Fiji has introduced the Agriculture and Renewable Energy Loans Ratio, requiring commercial banks in Fiji to use two per cent of all deposits and similar liabilities for loans to the renewable energy sector, effective 29 February 2012.
SPC said its Economic Development Division’s Energy Programme would continue to assist Pacific Island countries and territories (PICTs) as the price of oil continues to increase. SPC also underscored that PICTs have embraced renewable energy and energy efficiency as a means of shielding their economies from the impacts of volatile oil prices. According to SPC, most PICTs aim to increase the amount of energy they get from renewable energy sources, and set country specific targets. SPC said, however, that PICTs must also adopt fiscal, financial and regulatory measures that can set the enabling environment for meeting these targets, such as the Agriculture and Renewable Energy Loans Ratio adopted by Fiji. [SPC Press Release]