PNG Treasury Minister Faces Scrutiny Over Billions in IMF Loans, Former PM Warns of Economic Control26/4/2024
Former Prime Minister and Ialibu-Pangia MP, Peter O’Neill, has voiced sharp criticism against the current administration's handling of Papua New Guinea's finances, particularly its escalating borrowing from international institutions. In a statement released yesterday, O’Neill highlighted concerns regarding the significant influx of loans welcomed by Ian Ling-Stuckey, the Minister Assisting the Prime Minister on Treasury Matters, over the past three years. O’Neill claimed that Ling-Stuckey had overseen the welcoming of billions of Kina worth of loans from the International Monetary Fund (IMF) and the World Bank.. "Seeking a new loan of nearly one billion Kina, the former treasurer Ling-Stuckey has signed our country up to more debt and increasing controls by the IMF," O’Neill stated. He criticized the IMF for its lending practices, accusing the institution of exerting control over borrowing countries' economies in exchange for debt. O’Neill emphasized that prior to Ling-Stuckey's tenure, PNG had maintained zero debt with the IMF and had relied on the advice of an independent Treasury Department. O’Neill expressed dismay at the rapid increase in borrowing under Ling-Stuckey's leadership, citing figures of US$1.281 billion (over K4.86 billion) borrowed over the past three years to bolster the economy amidst a lack of foreign direct investment. "Instead of building the economy and creating jobs and broadening the tax base over a steady period, Ling-Stuckey chose to have an ever-increasing debt to the IMF matched by burdensome reforms," O’Neill criticized. Highlighting Ling-Stuckey's recent visit to Washington DC to negotiate further borrowing, O’Neill underscored the stark contrast from previous administrations, noting that PNG had not borrowed from the IMF since 2001. "In 20 years, we had no need to run to Washington DC begging for handouts. Now, we are asking so often, the IMF has set up a permanent office in Port Moresby," O’Neill lamented. The critique from O’Neill reflects broader concerns within the political landscape regarding PNG's growing indebtedness and the implications of increased reliance on international loans for the country's economic future. Also read Comments are closed.
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