26.7 C
Port Moresby
January 19, 2022
Finance News

Polye Slams Government Loan

By Jack Lapauve Jnr – EMTV News, Port Moresby

The Opposition has strongly condemned a government loan of K1.5 billion from an international financial institution.

Opposition Leader, Don Polye, criticised the government by stating that the loan would not help the economy. Polye said enough loans have already been acquired and the country’s debt continues to increase.

“We have outstanding loans which are yet to be repaid, getting more loans will not help improve the current status of the economy,” said Polye.

Claiming that the total debt of the country is at K31 billion, the former treasurer said the government must consider the effects on ordinary people.

“It is the concern for the small people who will be greatly affected,” Polye added.

The opposition leader says the government is playing an expensive game to draw finance into the country. Polye in turn condemned the move by the government in securing the loan overseas.

Treasurer, Patrick Pruaitch, stated that while passing the 2016 budget in November 2015, a clause provided the option for sovereign financing of K3 billion.

Minister Pruaitch said the Treasury Department and Bank of PNG had been working closely to secure this loan by legal processes.

He stated no specific project in terms of what the money would be used for, but he stated that the loan would be used to meet expenses of the state including infrastructure and other developments.

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