Recently, there were news reports on the loans provided by China to Tonga many years ago. China offered concessional loans to Tonga based on the principles of bilateral friendship and equal cooperation. When Tonga was in trouble and asked for loans to ease economic pressure, China was the only country to lend a helping hand.

The Export-Import Bank of China (CEXIM) has offered 3 concessional loans to Tonga, among which the loan for the International Dateline Hotel project has been paid off in 2016. The loans for the reconstruction projects of CBD in Nuku’alofa and National Road upgrading are still in repayment period. Outstanding balance is about USD 58 million according to current exchange rate.

It is an international common practice for governments to borrow moderately to develop the economy, which is also a main business model of the World Bank and the International Monetary Fund. The concessional loans from China have effectively promoted social and economic development of Tonga and brought real benefits to the Tongan people.

Taking full account of the difficulties and concerns of Tonga, China has offered debt rollover to Tonga quite a few times under the bilateral and multilateral framework. For example, the CEXIM gave loan grace period in both 2014 and 2018, took part in three rounds of G20 debt relief initiatives in 2020, May and November 2021 respectively. In recent years, Tonga has managed to overcome the difficulties and paid back loans on time.

We hope an objective and fair position could be observed on this matter without misleading the public with groundless speculation.