After joint efforts by the Tongan High Commissioner in London and the German Ambassador in Wellington, the Government of the Federal Republic of Germany has resolved that the remaining debt from the shipping loan of the Government of Tonga for the purchase of container ship "MV Fuakavenga" and inter-island ferry "MV Olovaha", in the amount of EURO 1.5 million (Tongan Pa'anga 4 million) will not have to be repaid to the German Development Bank.

Instead, the Government of the Federal Republic of Germany has proposed to the Government of Tonga that the remaining balance be utilized for the funding of projects in Tonga approved by the Government of Tonga and deemed beneficial to the people of Tonga.

The Embassy of the Federal Republic of Germany in Wellington New Zealand has requested the Government of Tonga to submit appropriate project proposals for bi-lateral consideration.

The shipping loan by the German Development Bank for the purchase of the "MV Fuakavenga" and the "MV Olovaha" was granted in the 1970's with the dual purpose of ensuring a reliable safe inter-island passenger and freight service between Tongatapu, Ha'apai, Vava'u and the Niua group and providing a container vessel for the transportation of goods between Australia and New Zealand, and the Pacific islands of Fiji, Samoa and Tonga.

The Government of the Federal Republic of Germany is satisfied that the objectives for which the development loan was granted have been achieved and that both vessels have provided essential services for the people of Tonga for the past 30 years. German Embassy, 23/07/08.