PM O'Neill mismanaging PNG Economy : Polye

PM O’NEILL HAS PROVEN HIMSELF THAT HE HAS MISMANAGED THE ECONOMY: THE PROVE IS HE HAS RESORTED TO US$250 MILLION IMF LOAN

The Opposition says the Prime Minister Peter O’Neill has proven that he has mismanaged the country’s economy amid his last resort to the International Monetary Fund for US$250 million loan.

“We really want to highlight some of the very fundamental facts revealed by the Prime Minister Peter O’Neill today (Thursday) at the floor of Parliament that only reflects his mismanagement of the country’s economy,” said the Opposition Leader Don Polye.

Mr Polye said the revelation was US$250 million loan.

He added Mr O’Neill has engaged the government to secure this loan to address the foreign exchange orders that are queuing in the commercial banks.

“There are other international companies which told me that they did not agree with the loan.

“I know why they do not agree because PNG’s credit rating will definitely go down to the minus. It is already in -B rating,” he said.

The Opposition Leader said that also meant the country had a debt level as high as 70 per cent.

He further said consequently the country would be struggling to repay the loans.

“That is why the commercial banks are saying they will oppose this.

“It is not because the loan is coming from IMF. IMF comes in to bail us from our government-induced cash flow problem as it our last resort,” he said.

Polye said the Prime Minister could not blame the downturn of commodity prices as he got a very bad K3 billion UBS loan, which has worsened the economic situation in the country.

“The most important aspect to take note of is the issuance of K2.5 billion Sovereign Bond.

“It has failed to attract financiers as the markets have lost confidence in the government. They cannot lend money to PNG through the issuance of the bond,” he said.