Fund to be on lent at 1%

Fund to be on lent at 1%

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GENERAL OBJECTIVES FOR ON­LENDING THE GOVERNEMNT DEVELOPMENT LOANS AT 1% INTEREST

  1. Pursuant to article 5, the Government shall provide to the TDB funds of up to T$3,550.000 to be on‐lent at 1% interest.
  2. The TDB shall on‐lend funds at 1% interest, to facilitate the general objectives outlined below and specific objectives in Annex 4.
  3. All funds on‐lent under the categories below must be repaid by the Borrower to the TDB within the periods stipulated.
  4. In the event that a Borrower defaults in the repayment of his loan -
    1. the usual default notification and loan recovery processes of the TDB will apply; and
    2. If required, the TDB shall pursue legal proceedings to recover the loan amount due.
  5. Subject to Annex 6.2(e), where the Borrower does not settle his full loan amount at the end of the TDB's loan recovery process, the Borrower will not qualfy for any future loans under this Agreement.
  6. While servicing an existing loan, a Borrower may apply for an additional loan under this Agreement provided that, after due consideration, the TDB has assessed that:
    1. the Borrower is up to date with all current loan repayment; and
    2. the Borrower will have the ability to service the new loan as will as maintain repayment for the existing loan.
  7. The TDB shall apply the maximum loan ceilings outlined in the table below in respect of each Fund.
Funds General Objectives Repayment Period Max Loan
Agriculture Development  Fund
  1. As a matter of priority, to boost exporter’s confidence by providing a facility to allow the early payment to primary producers for their exports
  2. Investment in expanded agricultural production and value added activities.
Repaid within 2 years T$100k.
Fisheries Development   Fund
  1. Assist fishermen, vessel owner and exporters to generate increased exports, income and employment in the fisheries sector
Repaid within 2 years T$30k
Tourism Loan Fund
  1. To promote the development of new tourism products and event.
  2. To improve the quality of small‐medium accommodations
  3. To develop a clean and beautiful tourist environment
  4. To support and encourage community participation in development of heritage sites and cultural events
  5. To support coordination within the tourism sector
Repaid within 2 years T$50k
Manufacturing Loan Fund
  1. To promote the development of competitive and value added products
  2. To stimulate innovation and product diversification
  3. To support production and marketing capacity of export ready manufacturers
  4. To promote and encourage cooperation and coordination in manufacturing sector
Repaid within 2 years T$50k
Education Loan Fund
  1. To promote and enhance the academic and professional skills of Tongans that need to further their study abroad but cannot afford the costs, diploma level and upwards.
  2. To support qualifications from a Tonga National Qualifications and Accreditation Board (TNQAB) accredited institution at the diploma level and above.
Repaid within 4 yeras T$50k

 

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