The National Reserve Bank of Tonga is concerned that there is some confusion amongst the public regarding the suspension of credit ceilings on lending to the private sector.

The National Reserve Bank of Tonga wishes to further advise the public that credit ceilings were removed in February 2007 to allow banks to consider lending for the recovery of those who were affected by the civil disorder in November 2006. Therefore, there is No Limit to the bank lending mandated by the National Reserve Bank of Tonga.

Despite the suspension of the credit ceilings, the Reserve Bank expects that banks will continue to lend prudently, consistent with their own internal credit guidelines. The Bank will continue to closely monitor the growth in lending to ensure the promotion of a sound financial system and macroeconomic stability. National Reserve Bank of Tonga, 13/08/07.