IMF loan ‘not negotiated’

By Rebecca Kuku
THE Treasury and the Government did not negotiate for the K1.2 billion loan from the International Monetary Fund (IMF), all they did was request for it, says former prime minister and Ialibu-Pangia MP Peter O’Neill.
O’Neill told Parliament yesterday that Treasury Minister Ian Ling-Stuckey should not misinform Parliament and the country in saying that he negotiated for the interest-free loan. “This interest-free loan is given by the IMF to member countries who are described as low income-earning countries with the view of poverty reduction rate,” he said.
“This funds are from the trust account coming under the Rapid Credit Facility.
“So we just joined other countries like us who are facing a crisis to request for a loan, it was never negotiated by the treasurer or Government officials.”
O’Neill said these types of loans normally came with two conditions – quantified and structural reforms.
He asked Ling-Stuckey to tell Parliament if the zero interest rate came with either of the two conditions as was normal practice.
However, Ling-Stuckey told Parliament that the zero per cent interest rate loan came without conditions.
He admitted that the loan was under the Rapid Credit Facility that O’Neill spoke of but said that it came without conditions to devalue the kina.
Prime Minister James Marape on Tuesday had lavished praise on his Treasurer for “securing the financial agreement”.
“I want to congratulate Treasurer Ling-Stuckey for working tirelessly to repair the country’s budget,” Marape told Parliament.
Marape said Ling-Stuckey and his team had worked closely with the IMF over many months.