US$790m debt for Forex

The Government have taken steps in securing some funding from the international partners particularly from the World Bank and the Asian Development Bank.

Prime Minister Peter O’Neill made the announcement recently.

The Prime Minister said the World Bank along with the ADB is working on the drawdown of US$300 million each to assist with the Foreign exchange in the country.

He said the Credit Suisse Bank were also preparing legal documents for a US$190 million.

All in all, a total of US$790 million will be available for this financial year.

O’Neill clarified that the money will go straight to the Central Bank then to the commercial banks.

However, he said much of the funds will replace the Treasury Bills.

PM O’Neill further reiterated that most of our loans are concessional loans to balance our budget.

He explained that the only expensive loans that the Government took was short term loans by borrowing from the Central Bank’s Treasury bill.

He also clarified that in order for our economy to grow, we need to borrow from our partners.

O’Neill said the Government had been committed in repaying its debts as long as the economy continues to grow.

Freddy Mou