The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper focuses on the insolvency of the National Bank of Fiji (NBF). As of June 1995, an estimated two-thirds of its loan portfolio was judged to be nonperforming (71/2 percent of GDP), with slim chances of recovery, leaving the bank with a negative net worth estimated at F$170 million. The Reserve Bank of Fiji (RBF) raised concerns about the NBF's lending practices as early as 1991, but it lacked the power to enforce a solution. The problems continued to grow until the NBF's liquidity position finally became untenable in 1994.