PNG Government secures K1.5 billion loan

The Papua New Guinea  Government has successfully  unsecured syndicated loan, for up to US$500million (K1.5 billion) arranged by Credit Suisse AG-leading international financial institution. This was officially announced by Treasurer Patrick Pruaitch in a paid advertisement yesterday.

The first tranche of this loan is to be drawn down immediately. Mr Pruaitch said all legal and procedural requirements havd been met to the letter of law in respect of this loan as is the case with any other loan or financing which the government enters into.

He said the Department of Treasury and the Bank of Papua New Guinea (BPNG) had worked hard and diligently to acquire this loan so that government would be able to finance the budget deficit for 2016 on the best possible terms for the state, its institution and the people of Papua New Guinea.

 He said government has been working closely with the State Solicitors Office and leading international and Papua New Guinea law firm-Gadens and Aust to ensure that all legal requirements have been complied with and due process is followed. He had stated that any legal challenge to the legality of this loan would be a waste of time and tax-payers money and that the government respectfully requests those who threaten to undertake such malicious legal action to reconsider their motives which are politically driven and not in the best interest of Papua New Guinea.