Businesses face toughest financial crisis
Thousands of workers have been laid off or sent on leave without pay, and business owners say these decisions are never made lightly.
Fiji Commerce and Employers Federation President Sandeep Chauhan says many businesses have taken on loans, not to invest, but to simply stay afloat.
“Every business as you know will try and ensure that we stay afloat for as long as possible. They will talk to their financiers or financial backing institutions to ensure they stay afloat for as long as possible.”
Layoffs started with the tourism industry, but the effects of COVID-19 have rippled through the Fijian economy.
Chauhan says the uncertainty surrounding the whole situation is making matters worse for the private sector, having to take some drastic steps.
“Obviously businesses are trying to do their best in terms of keeping the livelihood of people who are employed and to ensure that they are not affected because every person that a business employees obviously feeds other members of the family – two, three or four people so there is a multiplier effect.”
Fiji Chamber of Commerce President Dr Nur Bano Ali says the Fiji Revenue and Customs Service is anticipating decrease in revenue collection.
“FRCS is expecting to drop its revenue by fifty percent, so that easily translates into what businesses are facing. So FRCS is facing a fifty percent slowdown and business is facing 60 percent slowdown.”
The government will provide loans for Small and Micro businesses at concessional rates.
The Ministry for Economy has set aside five million dollars for this new scheme until the end of July with the possibility of an extension if demand is high.
Credit: Fijivillage
Date: 8/6/2020
