Tonga Development Bank claims 3rd ADFIAP Award
Winner: Local Economic Development
Project Entry: TONGA’S GROWTH FACILITY AND STUDENT LOAN SCHEME (GOVERNMENT MANAGED FUND)
The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) awarded the Tonga Development Bank (TDB) with a special plaque of merit in recognition of the Banks effort in directly supporting the key growth sectors through innovative financing schemes under the Category 7: Local Economic Development.
This award was presented during the 38th ADFIAP Annual Meetings in Nha, Vietnam on the 13th – 15th May, 2015.
In August 2014, the Government of Tonga and TDB agreed for TDB to implement and manage the Growth Facility and the Student Loan Scheme known as the Government Managed Fund. Thus T$3.05m of the Government Managed Fund was allocated for disbursement of viable loans to the public at 1.0% interest and up to T$10m at 4.0% interest, targeting growth key sectors and industries in Tonga. This fund supports the Government’s focus to promote advancing the development of the private sector to raise its revenue and provide more services to the people.
The key growth sectors include:
- Agriculture Marketing and Production
- Fisheries Development and Export
- Construction and Utilities
- Retail & Wholesale
- Student Overseas Tertiary Education
TDB reports regularly to the Ministry of Finance and National Planning to ensure close monitoring, effective evaluation and reviewing of the fund and its progress, as well as its criteria and terms and conditions.
This is the third award TDB has received. The first two winning awards were given consecutively in 2010 and 2011, both in Category 8: Development Finance-Led Poverty Reduction.