ADB supporting growth in Tonga [1]
Friday, June 3, 2016 - 18:07. Updated on Friday, June 3, 2016 - 20:08.
Tonga has received a $3 million grant and a $3 million loan approved by the Asian Development Bank (ADB) to strengthen long-term economic growth and to have the capacity to respond to external economic shocks such as those caused by natural disasters.
Johannes Wolff, Public Finance Economist from ADB’s Pacific Department, said that the grant and loan would fund the first of three subprograms of the ADB-supported Building Macroeconomic Resilience Program for Tonga.
“The assistance is policy-based, meaning the funds can be released as budget support once policy actions outlined in the program are successfully completed, as they have been in subprogram one.”
$1 million of the funding from ADB’s Disaster Response Facility will provide support in the aftermath of Tropical Cyclone Winston, which struck Tonga in February this year.
The full program will run from 2016 to 2018 to help government continue to improve Tonga’s fiscal position through policy and public enterprise reforms.
Reforms carried out by Tonga’s Government since 2009 has seen debt management, public wage bill management, public financial management, business regulatory framework and public enterprises strengthen.
The ADB has provided Tonga with $168.5 million in loans, grants, and technical assistance since it began operations in 1972.