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Tonga can not afford another loan

Radio & TV Tonga, Nuku’alofa,10/05/2018

The Minister of Finance and National Planning – Pohiva Tu’i’onetoa has confirmed Tonga can not afford another loan.

He says there was a method used or otherwise known as GAP put in place when loaning money with conditions that Tonga’s loan cannot exceed 40 per cent of its GDP.

However Tonga has now reached 42 per cent instead.

Minister of Finance also adds, the Government is trying to collect money from its revenue to cater for the needs of the public.

He adds if the Government continues to loan more money then it will be very difficult to repay, however, he highlights the importance to focus on trade to improve the economy.

Tu’i’onetoa says, if the Trade Sector is very active with more export of goods then there is a high possibility for Tonga’s economy to grow.

He adds, the government’s initiative is to empower the local businesses through close cooperation with the Ministry of Labour.

Meanwhile, Hon. Minister also hints that $7 million pa’anga will be allocated for the salaries of teachers at the Church schools.

© Radio and Television Tonga News