Mahuta in an interview with FijiLive said because of high debt levels, they generally encourage Pacific countries to make use of grant finances where possible.
She said Aotearoa New Zealand’s approach to development funding is to provide grants rather than loans, therefore not adding to the Pacific’s debt burden.
“We recognise that taking on debt is a legitimate means for any government to finance development,” she said.
“These in many cases the available level of grant financing is unable to meet the development needs of the Pacific. We remain concerned about the unsustainable nature of the high debt.
“Due to these concerns, we generally encourage Pacific countries to make use of grant finances where possible, and following that, concessional loan finances.
“This includes concessional loan from the International Financial Institutions such as the Asian Development Bank and the World Bank.
“We encourage all partners in the region to support long-term resilience outcomes in line with Pacific priorities and a high degree of Pacific ownership,” she said.
Photo file RNZ Pacific Caption: New Zealand's Foreign Minister Nanaia Mahuta