Country force into getting more loans, Polye says

 The country has been forced into an unfortunate situation where it will have to get more loans to finance existing domestic and international loans, Opposition leader Don Polye says. 

He said yesterday that the only strategy available to the nation now was go get more loans to refinance domestic and international debt liabilities as well as replenish the foreign reserve.

“We need to provide a panacea, a solution, and there’s only one way,” Polye told a media conference.

“That one way is to borrow to refinance existing debt. 

“We have no choice. We’re in a Catch-22 situation, it’s a two-edged sword for the nation at present. 

“If the foreign reserves are depleting very fast, if your Kina exchange rate is going down, and the demand for import is high, there is no business taking place and the Government is spending out of control, with expenditure up to the roof. 

“There’s only one way forward  that is to get loan to refinance loans like the K3 billion UBS loan, to refinance other debts, other liabilities in the domestic market. As far as I’m concerned, BSP has given a lot of loans to the Government.”