Better times ahead

By HELEN TARAWA
TREASURER Charles Abel admits the nation is facing financial and cash-flow issues but the economic situation is starting to improve, spurred by the turnaround in global oil prices.
“We are facing these issues. No one is denying that. It’s part of an economy that is very susceptible to commodity prices,” he told Parliament yesterday.
“There’s a range of circumstances that have been accruing over time and we’ve discussed that so many times at length (in) parliament, including all the things that our government is doing to correct that situation.
“It’s just disappointing given some of those circumstances including one of the largest earthquakes ever faced by this country that significantly impacted (the area) where all our resource projects are located.”
He said the government accepted the ratings given by international agencies.
“These agencies give us that rating and we accept it and that is their role and we take it on board in the overall assessment of things,” he said.
“Despite these issues, we continue to progress, we continue to obtain financing from most of the leading finance (institutions) in the world, as part of our budget strategy, the Credit Swiss balance that we are about to draw down this week. The situation is beginning to improve.”
Abel said the collapse of the oil price was now turning around and moving back to above US$70 (K210).
“I’m confident that not only will we draw down the financing that has been planned but see quite a significant turnaround in the economy and consequently in the performance of the 2018 budget,” he said.
“We need to build a more resilient economy and continue to work with the partners. PNG should be proud of the 2018 budget and the future of this country.”
He was responding to a question by Shadow Minister for Finance and Treasury Ian Ling-Stuckey on the current state of the economy and the assessments and ratings by internationally agencies.