Government seeks KK 1.2 billion US loan to finance budget

The government is seeking to get K 1.2 billion from the United States to fund the budget.

Treasury Minister Ian Ling-Stuckey was in the United States to discuss with the United States Treasury to secure the country’s share under the new US $ 100 billion Trust Asset Fund.

“This new global fund will be in addition to the benefits received directly by PNG from these new allocations of SDRs (Statutory Drawing Rights),” Ling-Stuckey said. “PNG’s share was worth almost K 1.2 billion.

“These funds will be a valuable contribution to financing the budget – which means supporting government spending in areas such as health, education, police and justice, and infrastructure. “

Mr. Ling-Stuckey said the international community was responding to the devastating economic effects of COVID-19, especially on developing countries, with a new fund of trust assets worth up to $ 100 billion.

And he also took a hit on the opposition, claiming they continue to stick their heads in the sand and claim that there is no global crisis that has driven PNG into an economic recession in 2020.

“Fortunately, the rest of the world, with the Marape government, knows that there is a global problem and is trying to find constructive solutions,” he said.

“The international response to the worst global economic crisis in a century is welcome. It’s just a shame that O’Neill remains ignorant and chooses to deny such international challenges.

But former Prime Minister Peter O’Neill fired back, saying the treasurer will be remembered with his PM for exploding debt levels to over 51% of GDP, the highest in living memory and having driven the economy into a failed state.

“No matter what explanation he gives, no one in PNG believes it,” Mr. O’Neill said.

“The facts remain, with the economy on the brink of collapse, he travels the world in beautiful costumes with a large beggar’s bowl. That’s what he reduced us to, a bunch of beggars.

“He shouldn’t go back to PNG, his failure is too painful and shameful for our people.”

The government will release the 2022 budget in November.

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