Generally loans are not less than 3 years and up to 8 years. They agree to acaccept or endorse a customer's bill of exchange up to an agreed maximum. They may then either hold or discount the bill itself or allow the customer to make its own arrangements for sale. Besides bills, banks handle other documentary credits, provide re-shipment and post shipment finance and provide forward exchange cover on exports from Fiji. Leasing of capital equipment is available ththrough several merchant banks.
Interest rates are generally higher than commercial banks.
Development finance in the area of agriculture, inindustry and commerce is provided by the Fiji Development Bank. Agricultural lending terms range from 3 to 15 years and commercial lending tenure is 1 to 12 years. Factoring of book debts can be arranged with one of the memerchant banks, but is not widespread. The Asian Development Bank, headquartered in Manila, is an international financial development institution owned by 56 member countries of which the United States and Japan are the largest shareholders. The transport and communications sector received the largest share of lending followed by energy, agriculture and natural resources, and social infrastructure.