Loan to ease forex: PM

By SHIRLEY MAULUDU
THE next tranche from the Credit Suisse facility will be used to mitigate the issue of foreign exchange in the country, Prime Minister Peter O’Neill says.
He told a Business Council of PNG breakfast in Port Moresby yesterday that the loan would be for US$300 million (K952.38m).
“Over the next few weeks, we are finalising the second tranche of the Credit Suisse facility which goes up to US$300 million which will go straight to sorting out the foreign exchange issues,” O’Neill said.
“It will be given straight to the Central Bank to mitigate that issue.”
He said this would be a year to consolidate both business and government and improve on areas that needed changes.
“Our own Government’s cash position is improving,” he said.
“Every month, we make sure that we continue to pay our bills on a timely manner.
“The cash position has been tight but is encouraging. The foreign exchange issue have been a bit of a concern.
“I am told by our people in the banking industry that we were behind by almost US$1.6 billion shortfall.
“It’s now down to less than US$300 million (K952.38m).
“I know there has been a lot of discussions about the bond issue. We are ready to go to the market. The market is not conducive for us to go to it yet – the rates are simply too high for us.
“We will wait until the market improves and we will go into issuing bonds that will be enough to give us another source of revenue, source of financing into the future.”