The Government of Tonga through the Ministry of Finance and Tonga Development Bank signed an extension of the Implementation Agreement of the Government Development Loans on 1st October 2020 for 5 years. However, due to the impact of the Hunga-Tonga-Hunga-Ha’apai Volcanic Eruption and Covid-19 pandemic, a variation agreement was signed (GOT-TDB Variation Agreement) on 29th April 2022 to be effective 1st May 2022. The following general allocations shall apply to the disbursement of the Government Development Loans at 1% as at 1st May 2022 for a relief period of 12 months. From 2 May 2023, all funds that were on-lent at 1% will be charged at 3% interest for the remainder of the period of each loan.