FSC makes $24m forex loss on India loan

September 01, 2009 01:47:21 PM

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Fiji’s 20 percent devaluation of its dollar in April this year has contributed to an unrealised foreign exchange loss of $24.4 million on the Fiji Sugar Corporation’s long term loan of US$50.4 million (F$100.56m) from the EXIM Bank of India.

Announcing the results for the financial year ended May 31, 2009, the corporation’s managing director Deo Saran said the foreign exchange loss, flood damage of $6.1 million and loss associated with the divestment from South Pacific Fertilizers Ltd of $2.4 million increased the operating loss before income tax to $36.8 million.

This compared with a net loss of $19.3 million in 2008.

Saran said the FSC had drawn down US$39.1 million (F$78.02m) of the loan as at May 31 2009. The US$50.4 million long term loan from India’s EXIM Bank is established as a line of credit for the FSC’s mill upgrading program.

Saran said the FSC’s trading results improved significantly in the year under review, with a trading loss of $7.2 million compared to a figure of $22.7 million the previous year. He said the drop was “largely attributed to a reduction in operating costs by $13.7 million.”

Saran said cane production for the 2008 season decreased to 2.3 million tonnes compared to 2.5 million tonnes in the previous season.