FDB pulls out of Hilton loan

  • 17th July 2003
  • 2003
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The board of Fiji Development Bank has rejected an application for a $12 million loan by developers of 5 – star Hilton resort.

Minister of commerce, Tomasi Vuetilovoni said that the loan was rejected because Denarau Investments could not meet certain conditions, however New Zealand based director of Denarau Investments, Neville Mahon said the loan was not denied but they no longer needed FDB assistance.

Mr Vuetilovoni said that the board had approved a loan of $10 million after setting certain conditions but when the investors applied for additional $2 million loan, it was rejected as it was not feasible for FDB. He confirmed that the interest of the bank was at risk if the said loan was approved.

Denarau investors maintain that it had never applied for loan and have assured that the project will go ahead, irrespective of FDB’s decision, as their aim was to attract investors and create job opportunities.