The National Reserve Bank of Tonga says its decision to revoke the license of the Chinese-backed Pacific International Commercial Bank was in the best interests of the public.
The Reserve Bank said it had re-commenced paying out claims by PICB creditors and depositors.
The PCIB began legal action against the Reserve Bank, but the Supreme Court has now given the bank permission to withdraw its application for an injunction against the Reserve Bank.
Tonga’s Reserve Bank revoked the PICB’s license at the end of last month.
Radio New Zealand reported Reserve Bank, Ngongo Kioa as saying the PCIB had failed to fulfil a promise to provide a niche product that would bring $100 million US dollars into the country for the purpose of loans.
The Bank had been trying to force Pacific International into liquidation for several months.
The Chinese-Tongan venture was started in 2014, with Tonga’s Princess Pilolevu as a minority shareholder. The major shareholder was Hu Jianhua, who held 51,000 out of 100,000 shares.
A spokesman for the princess told Kaniva News that she owned eight percent of the shares.
However, investigative journalist Micheal Field has reported that once the PCIB’s license was withdrawn the bulk of the bank’s shares – 90,000 – were transferred to the Princess, making her the majority shareholder.
The main points
- The National Reserve Bank of Tonga says its decision to revoke the license of the Pacific International Commercial Bank was in the best interests of the public.
- The Reserve Bank said it had re-commenced paying out claims by PICB creditors and depositors.
- The Chinese-Tongan venture was started in 2014, with Princess Pilolevu as a shareholder.
