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NINETY thousand applications for housing
loans are before the banks in what the Government believes is a show of
confidence by Papua New Guineans in the state of the economy.
Public Enterprise Minister Arthur Somare told Parliament during
grievance debate that this was because the Government had laid the
foundation for economic growth.
He said the growth rate had been maintained at 3.6% consecutively for
two terms from 2003 to 2007 with a projected growth rate of 5.2%
predicted by Treasury Department but banks were suggesting that the
growth rate might be 8%.
“Ninety thousand applications for housing loans are in the banks at the
moment, that’s the confidence that Papua New Guineans to talk with the
bank to get home loans.
“Five years ago, we didn’t have it; today there is new confidence.”
He said another indication was the number of budget surplus the
Government handed down every year and “this Government had done that for
the last three years”.
He said by next week another budget surplus of K1.6 billion would be
brought down in Parliament.
“I am confident, I can grow in PNG and invest money in PNG and bridge
the infrastructure gap.”
He said the Government would build a new Lae wharf starting next year
for a total of K483 million and put up-front an initial equity of K46
million.
Mr Somare said the Government would also invest another K25 million for
Lae roads.
“Since we assumed office, we reduced the debt by K1.2 billion; it was
sitting at K8 billion. We reduced that to just under K7 billion. We have
not missed a debt repayment since that time period, regardless of
whether Treasurers stayed or went. We maintained fiscal discipline all
this time.”
He also thanked former treasurer Bart Philemon for laying the
foundation.
He said for the same period, GDP growth was increased from K11 billion
in 2002 to K18 billion.
Mr Somare also called for the expansion of the economic infrastructure,
“We have a preference cap that does not allow us to expand economic
infrastructure right now because our international finance partners in
consultation with Treasury have chosen to maintain the preference cap at
K50 million, which is the draw-down every year.
He said the Government could only draw-down because of the debt
strategy, which is an integral part of the fiscal strategy.
“I am excited with the prospects right now,” Mr Somare said.
 
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