PNG keen on working with Pacific nations to benefit from global funds


PAPUA New Guinea is keen to work with other Pacific Island states facing the challenges of climate change and the Coronavirus (Covid-19) to ensure the region can benefit from global funds, Treasurer Ian Ling-Stuckey says.
“The international community is responding to the on-going devastating economic impacts of Covid-19, especially on developing countries, with a massive new trust asset fund worth up to US$100 billion (about K350.9 billion),” he said. “Fortunately, the rest of the world, along with the Government, knows there is a global problem and is trying to find constructive solutions.
“In my recent discussions with Robert Kaproth, deputy assistant secretary in the United States treasury, we discussed global solutions.
“One of these is the US Treasury’s strong support for creating a fund of up to US$100 billion.
“These new International Monetary Fund (IMF) issued assets are called SDRs or statutory drawing rights, and are fully exchangeable foreign currency just like the US dollar.”
Ling-Stuckey said these SDRs were distributed to all countries in line with their shares in the IMF.
The distribution meant that many rich countries received substantial new assets.
Some of these richer countries, led by the G7 nations, are considering using these assets to support developing countries. He said PNG was interested in these developments, and the possible creation of a new “resilience and sustainability trust” based on these new international assets.
“PNG is very interested in these developments, and the possible creation of a new ‘resilience and sustainability trust’ based on these new international assets.
“The aim is to grow back greener and more resilient from the pandemic. This new global fund will be in addition to the benefits received directly by PNG of these new SDR allocations. PNG’s share was worth nearly K1.2 billion.
“These funds will be a valuable contribution in funding the budget – which means supporting the government’s expenditures in areas such as health, education, policing and justice, and infrastructure.
“The on-going international response to the pandemic crisis in a century is very welcome.”