Tonga discusses debt with China, Australia’s Wong to visit

Business 17:49 01 Jun, 2022

Tonga, which was hit by a volcanic eruption and tsunami in January, has external debt of $195 million or 35.9 percent of its GDP

Tonga discusses debt with China, Australia’s Wong to visit

Australia's foreign minister Penny Wong will travel to the Pacific island kingdom of Tonga on Friday, days after her Chinese counterpart visited and discussed Tonga's heavy debts to Beijing, Tonga's government said, Qazet.az reports.

Wong will also visit Samoa for its 60th anniversary of independence celebrations, in her second visit to the Pacific islands since being sworn into office last week, her office said. The trip comes as China's foreign minister Wang Yi continues an eight-nation tour of the region, and the United States and its allies express concern about Beijing's ambitions for security ties.

Wong said Australia wanted to listen to Pacific leaders.

"We will increase our contribution to regional security: we understand that the security of the Pacific is the responsibility of the Pacific family, of which Australia is a part," she said in a statement.

Tonga's Prime Minister Siaosi Sovaleni earlier said six agreements had been signed with China's Wang on his trip to the capital Nuku’alofa, with his office confirming discussions were held about Tonga's loans from China.

Tonga, which was hit by a volcanic eruption and tsunami in January, has external debt of $195 million or 35.9 percent of its GDP, of which two-thirds is owed to China's Export-Import Bank, its budget shows.