Government able to repay loans: O’Neill

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THE Government is continuing to borrow to build and develop infrastructure around the country because it is capable of repaying, Prime Minister Peter O’Neill, pictured, says.
He said during the opening of the Sir Reuben Taureka Highway from Six-Mile to Bautama on Thursday that the national economy had almost doubled over the last five to six years.
It showed that PNG was able to repay its loans.
“We borrowing money to do that (build infrastructure) because we are able to repay that money,” he said.
“We have never defaulted on our loans since Independence in 1975.
“Bankers will not lend us money if we do not have the ability to repay the loan.
“That is a common sense not only for government but businesses as well.”
O’Neill said the public must not be afraid about the loans taken out by the Government.
“I know that we have been under a lot of criticism,” he said.
“It is healthy when it is constructive criticism.
O’Neill said most countries borrowed money to build their economy.
“That is why we are going to continue to build infrastructure that is going to serve you,” he said.
“Governments always plan about spending money and bringing services to people based on population. There is no other formula.
“When you have population like one million people living in Port Moresby, we need to upgrade the infrastructure that is needed.”