Tonga’s Bid To Write-Off Chinese Loan Yet Unsuccessful Country borrowed $119 million for reconstruction of Nuku‘alofa NUKU‘ALOFA, Tonga (Matangi Tonga, Sept. 5, 2014) – Tonga’s quest for its multi-million loans from the Exim Bank of China for the reconstruction of Nuku’alofa to be written off, so far had been unsuccessful, the former Minister of Finance Lisiate ‘Akolo told parliament before it closed on 28 August. Lisiate told the House that a proposal for government to plead with the Chinese government to have its $119 million (USD) loan to be turned into a grant assistance had been done at the highest level but to no avail. He said that he had been to China twice last year, first with the Prime Minister, Lord Tu’ivakano in July, when the loan/grant proposal was raised with the Prime Minister of China. In November last year Lisiate said he went back to China and met with the Management of the Exim Bank of China and again raised the loan/grant proposal, but the most that the Chinese could offer was to extend the repayment of the loan principal for another five years. The Tonga government’s loan from China for the reconstruction of Nuku’alofa became an issue for debate in House when a report was presented by a parliamentary select committee that was tasked with clarifying claims of inappropriate transfers of a large amount of the loan money overseas and other alleged irregularities.
Posted on: Mon, 08 Sep 2014 05:07:56 +0000
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