Breaking News

Country’s debts high, says IMF

March 11, 2022 The National

THE country’s debts “are at dangerously high levels”, according to the latest International Monetary Fund (IMF) report, which also warned against the adverse effects of “overspending”.

The IMF country report February 2022 released on Wednesday stated that “debt levels are at dangerously high levels and set to increase further as overspending leads to deficits which are in turn, externally financed”
“Macroeconomic vulnerabilities stem from PNG’s elevated public debt level: the debt sustainability analysis confirms that PNG remains at high risk of debt distress.”

Ialibu-Pangia MP and former prime minister Peter O’Neill said the IMF report “somewhat contradicted an economic update brought to Parliament by Treasurer Ian Ling-Stuckey recently”.

O’Neill said the damning report revealed the true state of the PNG economy and how the country’s finances were being managed.

“Our country’s debt has now increased three-fold, according to the IMF, and with the deficit increasing further than expected for 2021 because of over-spending and 2022 looking to exceed K6 billion, it is no wonder the IMF are very worried about PNG’s economic position,” he said.

“The report also noted the lack of transparency and reporting of Coronavirus (Covid-19)-related funds.”

The report stated that “Covid-19 -related procurement, including posting details of beneficial owners of successful bidders has not been updated since mid-2020.”

O’Neill said:

 “There are too many contradictions between the Treasurer’s glowing report of the economy and the IMF’s fact-based assessment.

“But one I would like to point out is the use of the temporary advance facility.
“This is being abused by Government to print money.

“It must come to a stop and the Government, as the IMF rightly points out, needs to repay to the Bank of PNG what has been borrowed.

“I encourage the Government, particularly the Treasurer, to speak truthfully about the state of the economy as our people have a right to know the extent of the damage that has been done in three short years.

“I also encourage the IMF and multilateral and bilateral partners of our country to be timely in their assessments and reporting as it has been over two years since the last assessment was done when PNG borrowed US$263 million.”

Read. Here:

https://www.thenational.com.pg/countrys-debts-high-says-imf/

....ends.

Prime Minister James Marape and the coalition government that held office post - 2019 Laguna Effect under Marape/Basil regime have no time to measure up to the bar set by IMF.

The last session of Parliament as PNG goes to the polls this year is set for next Tuesday 22 March 2022.

And, the legitimacy crisis of state that prompted regime change, or ' palace coup' masterminded by Tari MP who in the aftermath was elected PNG's eight Prime Minister still lurks.

It seems. We wish all sitting MPs well as they defend their seats in Parliament. It is every man or woman for himself or herself. 

Adam Smith's proposition on ' invisible Hand of God' says the selfish interest of the ruling elite may or may not translate into the service of Her Majesty the Queen of England's measurement of the Common Good.

Let our people learn from the mistake or lessons of the past, if any.

( Photo caption: Treasurer Ian Ling Stuckey - his assurance to Parliament and our people across the country on the rescue package to resuscitate the PNG Economy followed by the government has been disqualified by the IMF; Prime Minister James Marape - reforms he brought about since taking office will take time to produce the results; Ialibu/ Pangia MP Peter O'Neill - the former Prime Minister who was ousted in a ' palace coup' masterminded by Tari MP and Finance Minister in the PNC - led regime prior to the change of government in 2019 accused the Prime Minister of failing to stop the freefall of the PNG Economy; Late Grand Chief Sir Michael Somare - after his passing last year, the new generation leadership is challenged to improve its game in the national interest as opposed to serving parochial interests; East Sepik Governor Allan Bird - the Sepik prophetic zeal to lead the country with a difference when it matters means the 2022 NGE results are critical for Sepik leaders to re - invent themselves to feel the national pulse with the glue gone, Father of the Nation dead).

No comments