Australia refuses PNG’s request for budget support
Australia Monday knocked back budget support request by the Papua New Guinea government at the 27th Australia PNG Ministerial forum held at APEC Haus.
PNG had asked Australia for financial assistance in direct budget support with Prime Minister James Marape suggesting Australia give up to half of quarter of the AUD$600 million (US$406 million) a year to PNG in direct budget support.
Marape confirmed he was considering refinancing his entire government debt – potentially with China, India, Australia or anywhere else with the cheapest rates.
But Australia said they would not convert aid to budget support as requested by Marape but added that they could look at other measures, which indicated a soft loan.
Marape told reporters he would like some of Australia’s existing AUD$600 million a year aid budget for PNG to be sent straight to government coffers.
But at the close of the Ministerial forum, Australian ministers present said that they have agreed not to suppress the AUD$600 million a year aid but look at a possible option to assist outside of the existing aid assistance.
“At the moment (Australia) is giving, in a headline figure, over $600 million in terms of aid every year. If half of that or quarter of that comes into budget support, even better for us,” Marape said.
“And anything left over from budget support can be geared towards plans that we have identified as a country. I will be accountable (for) every dollar Australia gives.”
Marape also said that in addition to the budget support, the government would consolidate the K27 billion(US$7.9 million) debt.
“Over time, since 1975, loans have been part of our government budgets, and it has accumulated to a total of about K27 billion now. I’m looking to soft facilities out there, at best terms to PNG, without compromising our national sustainability and national integrity going into the future.
“Whether it is China or India or Australia, the cheapest help we can get, the best help in terms of the terms of loan. I am in the business of refinancing my entire loan portfolio for the country,” said Marape.
SOURCE: POST COURIER/PACNEWS
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PNG had asked Australia for financial assistance in direct budget support with Prime Minister James Marape suggesting Australia give up to half of quarter of the AUD$600 million (US$406 million) a year to PNG in direct budget support.
Marape confirmed he was considering refinancing his entire government debt – potentially with China, India, Australia or anywhere else with the cheapest rates.But Australia said they would not convert aid to budget support as requested by Marape but added that they could look at other measures, which indicated a soft loan.
Marape told reporters he would like some of Australia’s existing AUD$600 million a year aid budget for PNG to be sent straight to government coffers.
But at the close of the Ministerial forum, Australian ministers present said that they have agreed not to suppress the AUD$600 million a year aid but look at a possible option to assist outside of the existing aid assistance.
“At the moment (Australia) is giving, in a headline figure, over $600 million in terms of aid every year. If half of that or quarter of that comes into budget support, even better for us,” Marape said.
“And anything left over from budget support can be geared towards plans that we have identified as a country. I will be accountable (for) every dollar Australia gives.”
Marape also said that in addition to the budget support, the government would consolidate the K27 billion(US$7.9 million) debt.
“Over time, since 1975, loans have been part of our government budgets, and it has accumulated to a total of about K27 billion now. I’m looking to soft facilities out there, at best terms to PNG, without compromising our national sustainability and national integrity going into the future.
“Whether it is China or India or Australia, the cheapest help we can get, the best help in terms of the terms of loan. I am in the business of refinancing my entire loan portfolio for the country,” said Marape.
SOURCE: POST COURIER/PACNEWS
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