World Bank, IMF link advanced

Deputy Prime Minister and Treasurer Charles Abel has advanced engagement with the World Bank and International Monetary Fund (IMF) at meetings in Washington in the United States to stimulate positive economic development in the face of global challenges.
Abel said the new underwater fibre optic communication cable project that would deliver cheaper and faster internet, and the provision of concessional financing for the restructuring of existing debt, would deliver positive stimulus for the economy.
“Papua New Guinea has a close working relationship with the World Bank and IMF and the benefits of this engagement will become even more obvious to our people with the delivery of cheaper and faster internet,” Abel said.
“Working with the World Bank and our partners in Australia, the new submarine communication cable will deliver greater internet access for Papua New Guineans.
“The new communications cable will make the internet we receive on our computers and smart phones much faster, and with the increased supply, we will see internet data prices fall.
“Increased access to the internet is essential if we are to advance PNG’s economy and improve service delivery.
“The submarine cable has been the subject of much discussion in recent years, and now we are moving ahead so that it will be in place ahead of the Apec summit.
“The time given to our country by the World Bank and IMF executive and management was tremendous.
“I took the opportunity to remind them of the particular circumstances of PNG and the small Pacific Island states.
“I said PNG has globally significant natural assets to build a new, responsible, sustainable economy that brings inclusive development to its people and also can support climate-change mitigation globally.
Abel said discussions with the World Bank on restructuring existing debt with concessional funding would further simplify debt that had been established over recent decades and reduce servicing costs.
“Papua New Guinea has never defaulted on a debt payment, and this is respected by global institutions such as the World Bank and the International Monetary Fund. We are in talks with the World Bank and IMF so that we can bring together a number of scattered debts and consolidate these under a single debt facility at a much more favourable interest rate,” Abel said.
“Debt consolidation will save public funds and retire outstanding loans quicker than had previously been possible.”
Abel was accompanied by Treasury Secretary Dairi Vele and Bank of Papua New Guinea Governor Loi Bakani.
The DPM also had 15 meetings, including separate meetings with the World Bank CEO Kristalina Gregorieva, its Asia-Pacific director Victoria Kwakwa and Australian Treasurer Scott Morrison.