Country Report Tonga
- ID: 2138734
- April 2016
- Region: Tonga
- 17 Pages
- The Economist Intelligence Unit
On April 19th the media reported that new soft loan terms were being offered to businesses by a state-owned enterprise, the Tonga Development Bank (TDB), starting from this month.
The TDB is offering loans under an existing business investment incentive fund. The loans, which have interest rates from 1-4%, are available to "priority" business sectors, which, in reality, include a wide range of industries such as agriculture, fisheries, tourism, manufacturing, construction and retail. In April the government announced that the loan repayment periods were being extended from nine months to 2-4 years. Fees and charges under the loan scheme are also being waived.
As well as business loans, the TDB is offering education loans of T$50,000 (US$23,000) at 1% interest, to be repaid in four years. An overseas medical cover loan of T$20,000 is also available, at 4% interest, to be repaid in two years. Microfinance for women and young people will also be available under the scheme, providing finance for vulnerable social groups.