Credit rating change making investment firm struggle

Business

THE downgrade in the country’s credit rating has negatively impacted the performance of investments by Melanesian Trustees Services Limited (MTSL).
MTSL chief executive Kennedy Wemin said this was also due to the ongoing foreign exchange shortage. But he remained optimistic on the growth of the trustee company.
Wemin said that the situation had strained business relations with foreign partners during the year.
“The downgrade in the credit rating for PNG has impacted us significantly in terms of value. And the foreign exchange stock as well has also done that to us,” Wemin said.
“It is not because businesses are not performing. And for investors such as us, there has been a decline in value.
“There has been a long drought and during that a lot of our partners who are investors from aboard cannot take their share of distribution out of the country.
“As a result we have a kina pile-up in the country. We are unable to pay for goods and services.
“And a major reason why all these businesses have been able to survive is because of the fact that our suppliers and partners overseas have been gracious enough to allow us to trade under the circumstances.
“But having said that, they have not been able to take their dividends out as partners. And they are asking us to carry the same risk.”

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