The collapse of some financial credit institutions in the United States this month has not directly impacted Tonga, according to the Minister of Finance Hon. 'Afu'alo Matoto today.

The Minister explained that Tonga is not directly affected because we do not have any affiliation with nor do we have any branches with banks that have folded in the United States. However, it may affect the flow of remittances from Tongans who are living and working in the United States because the credit crash may affect their jobs.

The Minister said that remittances sent by Tongans in the USA amounted to around $120 million pa'anga annually.

He said that Australia and New Zealand would be affected because American banks also have branches in these two countries but he was optimistic that any slow down in the flow of remittances from there would be offset by remittances from Tongan seasonal workers in New Zealand. Tongan seasonal workers were scheduled to start working in Australia in December.