Polye warns against PNG Government's plans for IMF K1billion Loan

Papua New Guinea Opposition Leader Don Pomb Polye has warned against the Government’s plan to approach the International Monetary Fund (IMF) for a USD250 Million loan which was revealed today during question time on the floor of parliament.

Mr Polye in a press conference held immediately after the Parliamentary sitting today highlighted that PM Peter O’Neill’s rebuttal to him during question time about the Sovereign bond, and the fact that Prime Minister O’Neill has approached the commercial banks to back the Government on the USD250 million loan to IMF has left a lot of unanswered questions.

A concerned Mr Polye said “IMF coming in has shown that the country is being mismanaged and has raised a lot of questions as to why the Government did not raise the K2.5 billion sovereign bond?, while this is happening the Prime Minister is saying BSP has agreed to support the Government on the loan, he is still to get backing from the two other foreign commercial banks and they have said no because it affects the bank’s portfolio, it diminishes their credit rating and increases debt level and above all it affects the business performance”.

Mr Polye further stated that the no banker or financier would buy PNG bonds and that IMF coming in to assist is a desperate ploy by the Government because it failed to raise the K2.5 billion sovereign bond, and while the PM repeatedly states that the country’s economy is sound he has called on senior civil servants and advisors to be cautious and advise the PM properly and not to water down the current economic situation