Tonga's National Retirement Benefit Fund Board has taken up a 15% shareholding of the government-owned Tonga Development Bank under a restructuring of its capital base.

In a statement released this week the Minister of Finance, Hon. Pohiva Tu’i’onetoa, said that a special meeting of the shareholders on 26 July had approved for the NRBFB to take up unsubscribed shares at the Tonga Development Bank.

An amendment to the Tonga Development Bank Bill is required. The Minister stated that the legislative amendments will not only remove the TDB from being under the Public Enterprises Act, but also change the ministerial responsibility. The Ministry of Finance will take over the Tonga Development Bank from the Public Enterprises.

But Parliament still needs to approve an amendment to the Tonga Development Bank (Amendment Bill) 2018 for the TDB to be under the Minister of Finance's control.

The government will remain the major shareholder.

A spokesperson from the Tonga Development Bank said the transfer of the shares took place on 28 August, and they welcomed the entrance of NRNFB as a shareholder, as a breath of fresh air.

Changes proposed to the legislation also means that the TDB will be allowed to offer loans of several millions pa’anga, whereas before it could not offer loans of more than a million pa'anga.

The Minster of Finance stated that the Tonga government has adopted amendments to the Articles of Association of the TDB to enable the restructuring of the capital base of the bank, changes in adminstration and expansion of its services.