Parliament in Fiji is taking proactive steps to modernize the country’s outdated bankruptcy system, which has not seen significant updates in over 80 years. The new Personal Insolvency, Financial Rehabilitation and Entrepreneurial Rescue Bill 2025 has been referred to the Standing Committee on Justice, Law and Human Rights for an urgent review, marking a crucial legislative shift aimed at supporting individuals and small business owners facing financial difficulties.
Acting Attorney-General Siromi Turaga articulated that the proposed law aims to introduce more effective and compassionate methods for tackling debt problems. Central to the Bill is the “fresh start principle,” which is designed to help honest debtors regain their economic stability. This legislation particularly focuses on Micro, Small, and Medium Enterprises (MSMEs) that operate as unincorporated entities or partnerships.
The Bill will offer several flexible options including debt restructuring arrangements, debt rehabilitation orders, and a 60-day debt protection moratorium. These reforms are expected to provide entrepreneurs with a vital second chance while replacing the outdated framework of the Bankruptcy Act of 1944. A significant objective of the new legislation is to alleviate the stigma associated with financial failure, fostering a culture that supports individuals acting in good faith.
Moreover, the initiative aims to stabilize credit markets by simplifying and expediting procedures, which in turn should enable quicker repayment processes when possible. Opposition MP Faiyaz Koya has expressed his endorsement of the Bill’s referral to committee, indicating that its introduction comes at an opportune moment, aligning well with prior discussions about the challenges faced by MSMEs. He pointed out that there is broad support for the proposed changes.
Turaga assured that the Bill has gone through substantial refinement before reaching Parliament and represents a significant opportunity for small businesses in Fiji. Once the committee completes its review, the Bill is anticipated to return to Parliament next year.
This legislative overhaul exemplifies Fiji’s commitment to cultivating a more supportive economic landscape for small businesses, promoting entrepreneurship, and facilitating sustainable financial recovery for those in need. The positive impact of this Bill could significantly enhance the chances for individuals and businesses to move forward from financial setbacks.