The more information available in the international bond market will boost Papua New Guinea’s chances of securing a sovereign bond.
Institute of National Affairs executive director, Paul Barker made the comment when responding to question of the delay in releasing the International Monetary Fund (IMF) Report Article IV will hamper the Government’s bid for a sovereign bond.
The PNG Government will make a trip to the United States for a road show this year, because the sovereign bond, when secured will support the 2017 National Budget.
“If there are things that come out of the closet that do not look to good obviously it will concern lenders, but if they think there are things hidden in the closets it upsets the lenders. So it is better to bring things to the forefront to make sure the secrets are not kept,” Barker said.
“But to be able to access the bond market it needs to have adequate credibility in the market and at the moment there is clearly a level of reluctant because of uncertainty and the risks involved.
“The sovereign bond is the first time PNG have gone out, the idea was launch in early 2000.”
Meanwhile, Prime Minister Peter O’Neill told Loop PNG last week that the report is still with the Treasury Department for deliberation.
“It is my understanding that IMF mission report is been still discussed between Treasury and IMF because of some discrepancies.”
“The report has not reached NEC and therefore cannot comment any further,” O’Neill said.
Attempts to get comments from the Treasury Department and Minister responsible have been unsuccessful.