PNG PM, Treasurer Caught Lying over desperate IMF payday Lender Loan
Former Papua New Guinea prime minister and the Leader of the People’s National Congress Party, Peter O’Neill, has exposed Prime Minister James Marape and Treasurer Ian Ling-Stuckey for lying about the new 1.2 billion Kina Rapid Credit Facility loan from the International Monetary Fund.
Mr. O’Neill said they had both falsified information when they claimed they had worked hard to negotiate some kind of unprecedented IMF loan that is just for PNG, which is nonsense.
“This is a loan for desperate countries with no questions asked, that is supposed to be used for poverty reduction, but we all know it will just be wasted by this government,” Mr. O’Neill said.
“They did not have to negotiate anything, all they had to do was make the request and they are given 1.2 billion Kina that future governments will have to pay back.
“It is the same as going to a payday lender who gives you an easy loan, then hooks you in with more loans from which you can never escape.”
Peter O’Neill said that on the same day as the PNG request for the RCF was approved, Liberia was also granted immediate loan.
“Liberia is a West African failed economy and this government has now placed PNG in the same basket.
“This government has now lumped PNG in with desperate and failed economies such as Afghanistan Bangladesh, Mali and Burundi, who are facing crises, not because of COVID-19 but because of mismanagement.
“Obtaining an IMF Rapid Credit Facility loan is just like putting up a sign that says that PNG is broke.
“It is called cheap debt because it has strings attached, and it also increases our debt to GDP ratio which is expected to increase further and beyond legal limits.
“This debt increase has been confirmed by the IMF who stated on page eight of their recent Staff Report, that PNG’s public debt ratio is projected to rise to 45.4 per cent of GDP in 2021.
“This government is taking on new massive debt from the IMF without any way of raising income to pay this debt back.
“With the Porgera shut down resulting in a loss of around 100 million Kina per month, and the government failing to negotiate one single major resource project, there will be no increased means to repay all of this new debt.
“To put it bluntly, we are heading for a financial cliff, with a massive debt hole that will be left for future generations to pay back.
Mr. O’Neill said that Marape and Ling-Stuckey should walk outside and talk with businesses to understand the damage they are doing to the economy.
“The Business Council of PNG survey this week found that 60 per cent of businesses do not believe they will be able to keep operating for another year.
“The economy is in this mess because of incompetence, a lack of real decision making ability and failure to attract investment to Papua New Guinea.”
Next :
Mr. O’Neill said they had both falsified information when they claimed they had worked hard to negotiate some kind of unprecedented IMF loan that is just for PNG, which is nonsense.
“This is a loan for desperate countries with no questions asked, that is supposed to be used for poverty reduction, but we all know it will just be wasted by this government,” Mr. O’Neill said.
“They did not have to negotiate anything, all they had to do was make the request and they are given 1.2 billion Kina that future governments will have to pay back.
“It is the same as going to a payday lender who gives you an easy loan, then hooks you in with more loans from which you can never escape.”
Peter O’Neill said that on the same day as the PNG request for the RCF was approved, Liberia was also granted immediate loan.
“Liberia is a West African failed economy and this government has now placed PNG in the same basket.
“This government has now lumped PNG in with desperate and failed economies such as Afghanistan Bangladesh, Mali and Burundi, who are facing crises, not because of COVID-19 but because of mismanagement.
“Obtaining an IMF Rapid Credit Facility loan is just like putting up a sign that says that PNG is broke.
“It is called cheap debt because it has strings attached, and it also increases our debt to GDP ratio which is expected to increase further and beyond legal limits.
“This debt increase has been confirmed by the IMF who stated on page eight of their recent Staff Report, that PNG’s public debt ratio is projected to rise to 45.4 per cent of GDP in 2021.
“This government is taking on new massive debt from the IMF without any way of raising income to pay this debt back.
“With the Porgera shut down resulting in a loss of around 100 million Kina per month, and the government failing to negotiate one single major resource project, there will be no increased means to repay all of this new debt.
“To put it bluntly, we are heading for a financial cliff, with a massive debt hole that will be left for future generations to pay back.
Mr. O’Neill said that Marape and Ling-Stuckey should walk outside and talk with businesses to understand the damage they are doing to the economy.
“The Business Council of PNG survey this week found that 60 per cent of businesses do not believe they will be able to keep operating for another year.
“The economy is in this mess because of incompetence, a lack of real decision making ability and failure to attract investment to Papua New Guinea.”
Next :
Post a Comment