Tonga to repay Chinese loan, no deference [1]
Thursday, July 12, 2018 - 23:36. Updated on Friday, July 13, 2018 - 00:18.
The Government of Tonga this year will start repaying the Chinese loan of more than USD$100 million that was taken for recovery and reconstruction after the Nuku'alofa riots of 16 November 2006.
Prime Minister Hon ‘Akilisi Pohiva in a press conference on July 11 said the repayment was deferred to this year, after they asked over the past years.
He said government would start repaying the principal loan starting in this year’s budget.
"In the meantime, government has paid around $16 million in interest. Our journey now into future is that we would keep on asking China to divert this loan into a grant," he said.
Government took out the USD$119 million loan from China for the reconstruction of Nuku’alofa after riots and arson attacks [2] destroyed much of the Central Business District.