Tonga Govt pursues $100 million loan from China [1]
Wednesday, April 11, 2007 - 18:10. Updated on Monday, July 20, 2015 - 12:23.
The Government of Tonga is hot in pursuit of a $100 million pa'anga loan from China for the reconstruction of its capital Nuku'alofa.
The Prime Minister, Dr Feleti Sevele in a Press Conference last week announced that Tonga is looking at securing a $100 million loan from China.
Paula Ma'u, the Deputy Secretary to Cabinet yesterday said that the Prime Minister and the Minister of Finance will visit Beijing at the end of the month to "go over a few details of the loan."
With regards to whether the loan has been approved or not, Paula said, "that is why they are going to China."
Paula said that the loan is a soft loan, and Tonga is trying to tap into a mulit-million fund that China announced in Nadi, Fiji last year that it would make accessible to Pacific Islands Forum member countries.
The Nadi meeting was the first China-Pacific Island Countries Economic Development and Cooperation Forum, when the Chinese Premier, Hon. Wen Jiaoao made the announcement.
Already Tonga has received a $12 million pa'anga grant from this fund to balance its budget last year.
Meanwhile, in Nuku'alofa last week, the CEO for the Ministry of Lands, Survey and Natural resources, Dr Nailasikau Halatu'itu'ia announced that the reconstruction of Nuku'alofa would officially start with a ground breaking ceremony by King George Tupou V on September 28.
Targeted
Ironically, as Tongans look to China to rebuild their capital, it was the Chinese businesses in Tonga that were most targeted for violent attacks by rioters on November 16, suffering multi-million pa'anga losses and forcing many traumatised Chinese business owners to flee the country.