Stability clause for FX stability: PM

The Prime Minister announced that a stability clause in the Papua LNG Project agreement will see US$250 million (K843m) be maintained in the country while 10 percent of all export revenue will be returned to the country.

Peter O’Neill thanked the Central Bank for their negotiations in this regard, saying this will address the foreign exchange (forex) issues faced by the country.

The Prime Minister said this at the signing of the Papua LNG Project Agreement.

“I wish to thank the Governor for the Central Bank about the negotiation we are having with project partners,  to give visibility so that we do not have foreign currency issues when we are exporting all these  resources out of the country; our currency must be stable.

“The project partners have agreed that there is a stability clause of US$250 million every year must be maintained in the county, and 10 percent of all export revenue must be returned back in the country, giving stability to our country and confidence to our business community and make sure our economy benefits and our economy continues to grow,” said O’Neill.

Cedric Patjole