Interest rates were deregulated in 1987. The Suva Stock Exchange has been a minor source of capital for industry. As indicated, efforts are under way to cultivate the domestic capital market to increase access to new issuers and to promote domestic equity capital as a funding alternative to borrowing. Among the elements of this capital market liberalization would be an increased array of non government marketable financial instruments. Businesses may have fluctuating amounts outstanding up to an agreed maximum.
Interest is payable on daily balances.
Normal establishment fees and loan service fees apply and a commitment fee is usually charged on any undrawn balance from date of approval to final drawdown of the loan. Interest is charged on a declining balance basis monthly, quarterly, half yearly and annually and is slightly higher than those of overdrafts. 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.