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PNG's K1 billion Australian Loan is a 'good loan' : Barker

The Director of the Papua New Guinea Institute of National Affairs (INA) Paul Barker has described the K1 billion concessional loan from Australia as a “good loan”.

He said this when asked by journalists about his view on the loan taken by the government.

He said the loan is cheap compared to those undertaken by the previous government.

“The new loan looks a pretty good loan,” said Barker.

Meantime, the one-billion-kina concessional loan from Australia will stimulate the economy of the country.

Mr. Barker said these funds will be used to help ease the foreign exchange situation of the country.

Mr. Barker was addressing the NBC National Press Club on the topic’ Budget ' in Port Moresby yesterday.

“So rather like late 2018, we go this Sovereign Bond coming in which provided a stimulus and some concessional loans as well provided a stimulus of foreign exchange for a period of time but then, as 2019 progressed was basically used up.

“So this again will provide some sort of extra foreign exchange available which will be for the business community.

“But the funds are fundamentally then to go into enabling the government’s deficit financing which is basically to fund what it has spent during the course of this year for all its range of goods and services across the board.

"Because as I say, been a 16 Billion Kina Budget this year, 14 Billion Kina from direct revenue and 12 Billion Kina of that coming out of tax exacta revenue so it’s really to provide that gap,” Paul Barker said.

NBC News/ PNG Today

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