Big FNPF dividend is a worry

FNPF has increased its dividend from 5% last year to 5.5% for the year ending 30 June. This announcement has come out in record time. FNPF accountants don’t need to count their funds to work out what dividend the FNPF can afford will be because the decision has come from straight from the top. The biggest worry of all is the money that has been lent to Fiji Airways to pay the deposits needed to borrow the money needed to pay for the new Airbus aeroplanes. Nobody in their right mind borrows money to pay a deposit and any lender who lends money to people like this expects to earn very high interest rates. Let’s hope that Fiji airways gets enough passengers to keep up the payments on their billion dollar loan. If they don’t keep up the payments the planes will be seized and Fiji Airways will be finished.

Fiji Times June 29, 2013 $158m bonus

2 Responses to “Big FNPF dividend is a worry”

  1. MYFNPF Says:

    You’ve missed the main point here.

    This dividend has been funded by current FNPF pensioners. Cutting their pensions cuts the liabilities of the FNPF, which allowed the Bainimarama appointed Board to pose as generous in the short-term to current contributors.

    Check it on MYFNPF site.

  2. Land of Parasites Says:

    the loan would have to be guaranteed by government…so kranky franky would have to sell off a few more public assets to meet the guarantee…and the question which might come to be asked later when this happens is: how many public assets are worth close to a few hundred million dollars let alone a billion?

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