Loan blamed for cash-flow crisis
TREASURER Ian Ling-Stuckey says the critical problem with cash flow is driven by the need to repay K503.2 million to Credit Suisse in the last week of January.
Ling-Stuckey, in response to a statement by Ialibu-Pangia MP and People’s National Congress Party Leader Peter O’Neill regarding cash-flow issues, said this was a foolish, expensive, short-term loan that was very poorly designed by the former government.
“Now we are paying the price,” he said. Ling-Stuckey said the world was going into an economic crisis driven by an unprecedented health emergency. He said the Asia-Pacific was going into an economic crisis.
PNG is going into an economic crisis, he said.
“Let’s keep the discussion to the facts. Where you disagree with the home-grown Marape-Steven economic reform programme, let’s discuss those as adults.
“Let’s get into the specifics of what you disagree with in the context of the huge budget hole that you have left for this country which will take years to get out of,” Ling-Stuckey said referring to former prime minister O’Neill.
“If you have properly cost alternative ideas, let’s discuss those.
“At a time when we need cash for the coronavirus crisis, we instead have to pay K503.2mil for the Credit Suisse loan.
“This is also K503.2mil less in foreign reserves to act as a buffer for the coronavirus,” he said.
Ling-Stuckey called for evidence in the current government’s reform programme which endorsed a depreciation of the currency of more than over 20 per cent.
“Reveal the name of the public servant who betrayed their minister and secretary and they will be charged and sacked.
“Under the new government, the guiding principle is the interests of PNG.
“Even if IMF (International Monetary Fund) is talking about a devaluation, the new government regards this as the start of a negotiation.
“Governments need to have the determination and the abilities to resist foreign demands.
“The Marape-Steven’s government can resist such demands and get the balance right in protecting our national interests.
“Tax receipts are doing pretty well – significantly above forecasts and not as claimed,” he said.
5 comments
Spot on Ling-Stuckey…. keep doing the right thing. All lean PNGeans are behind you.,
Have Peter O’Neil behind bars, he’s like his former predecessor late Bill Skate, according to my knowledge in Public Policy on Fiscal policy management, there are rules and guidelines that should have adhere to with the advice coming from Finance and Treasury Department including Chief Secretary Isaac Lupari. I think PAC should commence with their findings and recommend them for prosecution.
We the grass roots people are really feeling the pinch of this foolish decision of Peter O’Neil who obtain this loan without proper advise from various Departments
PO did not have any long term permanent rescue plan for natural disasters made for the country during his reign why would he want to do so now for the Asia Pacific economic crises that is also faced around the world of the unprecedented health emergency. He brought the country to the brink of bankruptcy, he had himself to be blamed
stop covering up
Yes, yah These are the guys who respects people who pays them. They fear using public funds for gain. And are resisting demands from abroad who knows how weak and foolish the previous government was.
If Peter O’neil is not behind the bar after all allegation and investigations, I will never trust any leader and we will know that you are all telling lies to PNGeans.
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