The Tonga Development Bank's Ha'apai Branch was badly damaged in Cyclone Ian.

The Tonga Development Bank (TDB) has deferred loan repayments, and waived interest charges and fees for its customers from Ha'apai, for  three months in response to the destruction caused by Cyclone Ian.

The Bank’s Managing Director and CEO, Mrs Leta Havea-Kami said the moratorium on repayments, interest charges and fees will cost the bank over $85,000.

 “The moratorium ...is our way of helping our borrowers. We understand the emotional trauma caused by the strongest cyclone that has ever struck Tonga,” she said.

“This includes rebuilding their homes, recovering their losses and helping to ease the psychological stress and financial burden on the people of Ha'apai.”

The TDB has 371 borrowers in Ha’apai with loans worth $2.1 millon, Leta said.

Building damaged

The Tonga Development Bank’s Ha'apai branch was severely affected by the cyclone, which badly damaged the TDB building and one of the vehicles.

Leta the estimated cost of damage to the Ha’apai Branch at around $100,000.

“We were able to deliver normal services quickly after the cyclone. However, repair work to the building may take some time. Meantime, as the only bank with physical presence throughout all the island groups in Tonga we will be working closely with the people of Ha'apai during this very difficult time,” Leta said.