Treasury chief: Optimistic of getting K1b sovereign bond

Treasury Secretary Dairi Vele says the government is not trying to use shares of landowners to put up as mortgage collateral for a sovereign bond.

He says the government is seeking a sovereign bond in foreign capital markets in the order of $US1 billion.

Vele says the budget made for next year is only on paper and that the government will need to secure funds to execute the allocations.

He says foreign capital markets was an area the government had not used for a while but now they were  confident PNG could succeed in getting a sovereign bond.

“The reason why we say this is because now PNG has a good story where there is political stability, the resources are sufficient; there is tourism and many more positive things,” Vele says.

He also says if the State obtains a sovereign bond it will use its shares in the resource projects and some percentage of its share in the LNG venture.

Vele says the government hopes to obtain a bond by next year.

Joy Kisselpar