Govt secures interest-free loan

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THE Marape-Steven Government has secured an interest-free K1.2 billion loan from the International Monetary Fund.
The achievement is a “strong vote of confidence in the Government from the international community”, Prime Minister James Marape said.
Marape was delighted that Treasurer Ian Ling-Stuckey had secured the financing agreement.
“I want to congratulate Treasurer Ian Ling-Stuckey for working tirelessly to repair the country’s budget,” Marape said.
“He (Ling-Stuckey) has put a stop to reckless borrowings for poorly-conceived capital projects that mostly benefited foreign firms and SOE (state owned enterprises).
“He has stopped expensive commercial borrowings where the financial benefits flowed to foreign bankers.
“He has instead delivered a major reform agenda that has reshaped our debt management strategy to focus on securing good, cheap, transparent financing from the international community and our priority strategic partners such as Australia.”
Marape said Ling-Stuckey and his team had worked closely with the IMF over many months.
“I thank the IMF board for recognising my Government’s sincerity and transparency in setting a new direction for the economy.
“We are a more open, transparent and accountable government working to reduce corruption,” he said.
“We are working diligently to adjust from recurrent expenditure towards increased investment in growth through the capital budget while focusing on improving efficiencies and productivity for export growth.”
“The K1.2 billion lending programme was secured on unprecedented terms of 0.0% interest rate over 10 years with a 5.5-year grace period and the first principal repayments to start in December 2025.
“Like the Australian bridge-financing in 2019, the loan will go straight into the Bank of Papua New Guinea with direct foreign exchange benefits for the private sector.
“I want to assure the people that this loan will be put to good use in supporting our proven policy-based programmes.
“These include support for our Covid-19 response, Connect Papua New Guinea, Special Economic Zones to promote exports, Help programme, Agriculture and MSME policy, State-Owned Enterprises reforms and public sector reforms.”
Marape added: “This loan forms the core of the 2020 budget and is within our five-year fiscal consolidation strategy that aims to bring debt-to-GDP ratio to below 40 per cent in 2024 in order to restore commitment to the limits set out in the Fiscal Responsibility Act.”


  • 0% interest? WOW! Well done JM/STEVEN Government and treasury Ian Ling-Stuckey. Keep going…


  • That’s very remarkable.At least we have 0% interest and earn the trust from IMF bank from our reform structures.welldone Marape- Steven Government.

  • Borrowing is good if managed properly,
    Which means PNG resource projects need to be increasing and taken off hold , otherwise inflation based on time will still cost PNG billions,
    and loans still need to be repaid in full eventually.

  • Give credit where credit is due. We are always believers of face value… We take this as facts… Zero (0) Interest… Fair Deal… If on the other hand involves boomerang…. PMJM, you are not knew to this tactics…. You will only be blamed…. If on the other hand, if it is too true of international bodies such as IMF trusting your reform package,, brother you are on the right tract… my hats off…
    God bless PNG…. for the many years to come…

  • It’s hard to believe. No financial institution will survive without charging interest on loans. I am a doubting Thomas. There are some secret deals

  • What you have planned during the balance of this year and next year Let your Government deliver what the people expected and that will set a solid foundation for Pangu Pati to rock PNG in 2022 General Election. Make the Slogan Materialised Hon Marape and Steven.We want to see this Country reforming to a new Chapter and that is Making PNG the Rich Black Nation and No Child is Left Behind.We are Family and together We Progress.

  • We are all working for IMF and World Bank. They know too well, how to get their money back with interest. All our resources are within their reach.

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