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No more big, foreign loans: Treasurer
By CLIFFORD FAIPARIK
PAPUA New Guinea does not need any more foreign aid in large amounts
because the national economy is growing very well, Treasurer Sir Rabbie
Namaliu said last Friday.
“With PNG’s economy growing at about 4% annually and the strong
Government’s financial position, we are not in need of large amounts of
new external finance, even on concessional terms,” he said.
“But we still value the Asian Development Bank’s (ADB) contributions
including for the know-how it brings to projects and for its
constructive involvement with our Government agencies, community
organisations and private businesses. So we look forward to continued
engagement with ADB, and we have several promising initiatives under
negotiation.”
Sir Rabbie said this at Vulupindi Haus in Port Moresby when meeting with
ADB president Haruhiko Kuroda.
He said one such loan was the proposed loan for redevelopment of the Lae
port, which had high priority as an infrastructure improvement with
great potential benefits for a wide range of PNG businesses.
He said another was a supplementary loan for extending the work being
done at present in the financial management improvement programme.
A third initiative under discussion was the possible issue by the ADB
late this year or early next year of a kina-denominated bond, for the
first time in PNG.
Sir Rabbie said such bond would raise PNG’s profile with international
investors, attract new investors and provide low-cost finance for
Government with no foreign-currency risk.
Sir Rabbie said that PNG had benefited from loans and grants from ADB
since 1971.
Currently, there are 11 ADB loan-funded projects underway like the
Highlands Highway maintenance programme, smallholder agriculture,
Government financial management, employment skills, water transport and
maritime navigation aids, microfinance, provincial water supply and
sanitation, and fisheries.
 
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