DEVELOPMENT BANK

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The Tonga Development Bank Project is designed to help provide the Tonga Development Bank (TDB) with adequate long-term resources to meet investment demand, particularly in the agriculture, industry and tourism sectors. Institution building assistance will also be provided to TDB through various forms of technical assistance designed to improve TDB's profitability and operational efficiency. The project will provide resources to TDB to help meet its projected level of lending operations over the three year commitment period, October 1986-October 1989. Technical assistance will also be made available to TDB. The resources transferred as a line of credit to TDB will cover its resource requirements from 1986-89. Part of this credit will encourage expansion of TDB's financing of relatively larger subprojects in its pipeline. The line of credit will enable TDB to meet its normal lending demand while also encouraging selective and limited expansion of its lending operations to relatively larger subprojects which will not otherwise be eligible for finance from TDB due to its limited available resources.