Tonga’s debt crisis deepens: report


The Asian Development Bank (ADB) says Tonga is in a state of debt distress and cannot afford to take on more borrowing.

The Bank’s latest report on Pacific economies says the government must exercise restraint, especially on spending by staff members.

It also warns that current spending is significantly over budget.Watch movie online The Transporter Refueled (2015)

The World Bank and finance ministry have warned the economy will continue to shrink for the rest of 2011 – its third consecutive year of weak performance.

Matangi Tonga reports that rebuilding the capital, Nuku’alofa after riots in 2006 have been very costly.

The island nation’s economic recovery has also been hampered by the global economic downturn.