ANZ report flawed: PM

The National Main Stories

PRIME Minister James Marape says a report from ANZ is flawed, because it fails to recognise that a government has different responses to a collapse in revenues driven by external circumstances.
Responding to comments made by former prime minister Peter O’Neill this week, Marape said he ignored O’Neill’s “disastrous economic legacy” and worldwide implications of the Covid-19 pandemic.
“He then talks down the PNG economy.
“He lacks any specific budget details on how to get PNG out of its current difficult situation,” Marape said.
“You are scaring everyone by saying that there will be K2.7 billion in budget cuts.
“There will not be budget cuts of K2.7 billion.
“The Treasurer (Ian Ling Stuckey) has already talked of the K2.2 billion hit in revenue expected from the Covid-19 – and this will be updated in the MYEFO (mid-year economic and fiscal outlook) released at the start of the August sitting of Parliament.”
“This Government has been delivering on raising the additional financing such as the K1,258 million interest free, no conditions loan from the IMF (Intenational Monetary Fund) obtained on June 5.
“The ANZ figures on domestic and international financing are abysmally incorrect.
“The report suffers other major inaccuracies such as assuming arrears are ‘safe’ as they are included under ‘IMF’s programme’.
“The repayment of arrears are safe because they are a Marape-Steven government’s priority as part of its budget repair programme,” he said.
“On the other hand, the IMF puts these payments in an “adjuster” category and excludes them from determining the core budget deficit.
“The report fails to acknowledge the stimulus impacts shown in the 2019 FBO of a major infrastructure boost to the economy through much greater levels use of concessional loan financing, especially from the ADB (Asian Development Bank) as well as much greater donor funding than expected.”

5 comments

  • Unfortunately, the ANZ Bank’s reputation for credibility is far greater than any PNG government. Sadly, we must conclude they are correct and, almost certainly, Merape is deceiving us – again.

  • Well..Politicians aren’t good economists so they will always lie to protect their backside..! True ecomonists are those who practise economics as their lifetime trade and they practically know and can truly predict the in and outs of economics. ANZ has a unchallenged reputation in predicting and reporting on world economics! So there you go…believe your good PMJM or ANZ.

  • James Marape was an influential player and intergral part of key economic decisions made by Peter O’neil and should take full responsibilty for the mess he and his partner in crime did to the people of this nation.

    It is typicsl that recycled politicians will blame one another for the mistakes they both made together inorder to save face. Its all about control of peoples.purse.and the looting thereafter.

    These two highlanders have destroyed this country as we know it. Endemic systematic and systemic government and political corruption over many years have run the country dry off its financial.resources.

    COVID-19 has nothing to do with where we are economically now but it has certainly caught our corrupt politicians and government off-guard because our politicians and government officials were just too busy looting the peoples purse and unprepared to it effects.

    ANZ saw this coming several years ahead so it sold its retail business in the country to save itself from the ensuing financial fallouts of an economic collapse. It was well able to manage its financial risk and save millions in potential losses.

    Peter Oneill and James Marape will become targets of angry citizens when the economy eventually gives in under such extreme economic pressures being exerted by endemic corruption and a global pandemic.

    I would rather believe ANZ than Peter O’Neill or James Marape because Peter O’Neill IS James Marape and vice versa. Same corrupt fools being recycled and rebranded as a new Government.

  • Marape/Steven Government is doing better than any other previous so just dance to the music plays by the current Government. You may or not be one in such position in the future. Key board Warriors stand in line or otherwise.

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