Polye warns O'Neill not to mortgage anymore state Assets for additional loans

PORT MORESBY: Opposition Leader Don Polye has warned Prime Minister Peter O’Neill and his government against mortgaging of anymore state assets to secure any additional loans from overseas.

Mr Polye said he understood Mr O’Neill was upbeat of surrendering the state’s shares in upcoming Gulf (Papua) LNG and Stanley Gas projects as securities to negotiate for an additional overseas loan.

“There is nothing more to mortgage in the name of getting overseas loans as mortgaging the State’s shares in the LNG project is enough.

“Our Debt to Gross Domestic Product ratio of 43.1 per cent as reported by the Treasury Department has breached our Fiscal Management Responsibilities Act when Mr O’Neill with his government has gone over 35 per cent ceiling allowable,” he said.

In doing so, he said, would ‘sell our children’s future’ and the economy would collapse.

“The countries like China and India he travelled to to ask for additional loans will not lend PNG loans anymore because the controversial UBS loan, worsening corruption index of PNG, breaching of Fiscal Responsible Act among others have compromised PNG’s profile in the global arena,” he said.

The Opposition Leader said the implications of UBS loan has brought PNG down to its knees.

Meanwhile, supporting his leader, Opposition’s shadow minister for Finance Mark Maipakai said the Debt to GDP ratio being at 43.1 per cent was alarming and he feared that any further loans could lead PNG into ‘a banana republic state.’