PNG defaults in loan repayment

Papua New Guinea for the first time has defaulted on repaying its loan.

 Former Prime Minister and Member for Ialibu Pangia Peter O'Neill revealed this in a recent statement.

He added that PNG will continue to default until it reaches unbankable status and require international bailout. 

O'Neill also mentioned that the Government's stimulus package is not working. 

“When a full accounting for use of the K5.7 billion COVID stimulus package is finally out, if at all, this country will know what manner of individuals they have been supporting in Government," he said.

O'Neill also called on the government to explain clearly where it will be spending the recent transfer of K1 billion from Japan’s aid organisation, JICA.

In response, the Treasurer has asked Mr O’Neill to specify which loan he is referring to.

Attempts to get a response from O’Neill was unsuccessful.

Author: 
Freddy Mou