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Port Moresby
June 26, 2022
News

UPNG Students given insight on UBS Loan

Students of the University of Papua New Guinea were given insight into the reasoning for the government obtaining the UBS Loan.

And they got the information from all the parties involved both for and against.

Finance Minister James Marape, State Enterprise Minister Ben Micah represented the Government while ousted Treasurer Don Polye represented himself.

Despite the sensitivities involved the students proved they were indeed intellects, by showing restraint.

Forum square was packed, students ready to hear what their national leaders had to say about their latest business transaction.

The government side was given the opportunity to speak first; Minister Micah said the loan is a means to an end, it had to be done, or else PNG would be losing Oil search to the Arabs.

Or furthermore risk losing state assets altogether.

It was a calculated risk the government took with professional advice from economic experts and the blessing of state solicitors.

Finance Minister, James Marape, gave a historical perspective. He said past prime ministers borrowed money, without the need to table on the floor of parliament. Adding repayment deadlines have been met.

He said since 1975 government has been participating in projects. He gave assurance the country won’t go broke, stating if it did it would be on them come 2017. He said the sovereign wealth fund would ensure the sustainability of funds.

The one man opposer of the loan and former treasurer Don Polye said governments are not supposed to be operating as businesses; their sole purpose is to provide service. He said unlike past loans the UBS Loan is structured differently.

He predicts debt levels will sky rocket. He is adamant transaction was done in haste.

Government advisor gave the technical view. He believes all the rules were followed. He said there was no law stopping government from being involved in goverment businesses.  Their decision was based on value judgments.

He said a 35% debt to GDP deficit is low, that the borrowing was done for productive use.

Student Representative Council President, Bobby Yupi, thanked the National leaders all former students of the University for addressing the student body.

https://youtube.com/watch?v=AV1BdXB_N3g%3Ffeature%3Doembed%26wmode%3Dopaque%26showinfo%3D0%26showsearch%3D0%26rel%3D0

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