29 Oct 2007

People not liable for big Chinese loan - Tongan Cabinet Minister

4:17 pm on 29 October 2007

A Tongan Cabinet Minister says the people will not be expected to repay a soft loan from China that is being used to re-start businesses after rioting last year in the capital, Nuku'alofa.

Pro-democracy campaigners in Tonga say taxpayers have not been informed about their liability over the loan of nearly 50 million US dollars.

But the Transport Minister Paul Karalus says the money is to allow business people to replace properties destroyed by the riot.

He says many of these business could not get insurance relief and the government is unable to help.

"This is really a compensatory thing. And it is not as though the people are going to carry it. This money is going to be put up for those who had their properties destroyed - for them to pay for it over a period of time, under a soft term. So then to turn around and say that the people are going to carry it - it's hogwash."