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National Reserve Bank Amendment Act amend to build healthy working ties between the Bank and the Gov’t

Radio & TV Tonga, Nuku’alofa, 10/02/2017

The Government can request the National Reserve Bank of Tonga to utilize surplus on its account for emergencies but it must be approved by the Bank’s Board of Directors.

This is one of the amendments made to the National Reserve Bank of Tonga’s Amendment Bill submitted to the Legislative and was approved by the Committee of the Whole House this week.

Information from Dr. Ngongo Kioa – Governor of the Bank said, the amendment is to build a healthy working relationship between the Government and the Bank.

The amendment also cancels the clause which previously stated that the Government can take 20% of that account’s surplus almost every year.

The amendment also states that if this account recorded a deficit then the Government can intervene and inject money to the Bank to offset the decline in order for that account to remain at a minimum balance of TOP$10 million.

Dr. Kioa said the move was to enable the Bank to allocate this money on bank related matters.

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