Tonga debt china. Concerns regarding geopolitical control in a strategically significant region and the sustainability of debt have been highlighted by China's growing influence, not just . Tonga's current repayment plan is in part contingent on an additional A$30 million support from Australia. Apr 25, 2025 · China defends Tonga loans amid rising debt concerns: A call for fair representation Media reports are reigniting scrutiny of China’s loans to Tonga, prompting Beijing’s embassy to warn against misleading and groundless speculation. [24] Oct 27, 2024 · Tonga's 'debt trap' illustrative of China's strategic stakes in South Pacific The debt problem facing Tonga sheds light on the intricate nature of economic reliance and the broader geopolitical landscape in the South Pacific. Tonga has requested debt relief from the PRC but has been refused. After a decade of delays, renegotiations, and unsuccessful discussions, the government has started repaying its hefty loans to China. Apr 30, 2025 · A research fellow warns that China will not take a haircut on Tonga’s debt after Beijing took to Facebook to defend its lending practices. "Recently, there were news reports Jul 27, 2024 · Pacific Island nations are spending big to repay loans from China. But some say there are other roads available to them if they want to overcome their debt burdens. Riley Duke from the Lowy Institute's Pacific Aid Map unit highlights China’s firm stance amid rising concerns about Tonga’s substantial debt burden. Apr 26, 2025 · Tonga owes over $100 million to China. Debt-for-nature swaps could be a win-win solution to a looming debt crisis. Oct 27, 2024 · Tonga's 'debt trap' illustrative of China's strategic stakes in South Pacific The debt problem facing Tonga sheds light on the intricate nature of economic reliance and the broader geopolitical landscape in the South Pacific. Repayments will see the country’s debt burden rise to among the highest in the world. It means As of 2024, Tonga owes Beijing more than US$120 million, a sum roughly equivalent to a quarter of its annual GDP. As Tonga heads towards repayment deadlines in the next five years, its debt burden is set to skyrocket, placing it among the highest in Jul 11, 2019 · In December 2017, the International Monetary Fund increased Tonga’s debt distress rating from moderate to high risk, citing its vulnerability to natural disasters and noting that the large upcoming loan repayments to China would reduce Tonga’s foreign exchange reserves, double its debt-servicing costs, and could force the country to borrow Apr 25, 2025 · China's embassy in Tonga has taken to Facebook to defend its loans to the Kingdom, following fresh media coverage and concerns about the country's rising debt. Tonga is facing a precarious balancing act with its substantial debts to China. “So the focus is on who Jan 31, 2024 · Tonga’s debt burden is set to balloon over the next five years as the deadline looms on loans from China. Tonga's debt obligations are largely external, and over half of its external public debt is to China, with a sharp spike in debt repayments due from FY2024 onwards. Aid and development experts say the debts carry large risks for Pacific Island nations, where frequent natural disasters and economic shocks can hobble their repayments. A $119 million U-S-dollar loan from China, that has been sitting on the Tongan government's books for almost 15 year years. Concerns regarding geopolitical control in a strategically significant region and the sustainability of debt have been highlighted by China's growing influence, not just Jul 16, 2024 · It's been described as a millstone hanging around Tonga's neck. Jul 29, 2024 · Fiji, Papua New Guinea and Cook Islands also have moderate levels of public debt exposure to China, according to the AidData research lab at William & Mary, a Virginia-based public university in the United States. Only Bhutan, Laos and Djibouti will devote a greater share of national income to servicing bilateral debts this financial year. “We see that in Tonga, as well as other parts of the world,” Duke says. The Facebook post, shared on 24 April, says China gave the loans to help Tonga during a difficult time. drkh7fn jwgb41 odess r2l6ry kndndu yjycq4 pt6j1xf7 dgdvf5 mifk3xuu hjw