Treasurer irked over loan critics

SOCIAL media keyboard warriors need to understand that good, cheap loans can support Papua New Guinea’s development, says Treasurer Ian Ling-Stuckey.
Ling-Stuckey made the comment after he met the Japan International Cooperation Agency (Jica) president Dr Tanaka Akihiko on Wednesday to discuss the progress on PNG’s economic reform programme and Japan’s assistance to PNG.
“Too many people in PNG are critical of loans and borrowings. The reality is that loans can have greater benefits than costs,” he said.
He said a loan of K651 million was supporting the redevelopment of the Nadzab airport which was the country’s second major airport.
He said a second loan of K195 million for Ramu transmission system reinforcement project, was designed to improve the reliability of power supply to Lae.
Ling-Stuckey said such loans must fund worthwhile activities, “rather than roads to nowhere”.
“PNG’s 13-year budget repair plan, backed with accountability processes such as the International Monetary Fund (IMF), provide the basis for ensuring PNG’s debts are sustainable,” he said.
Ling-Stuckey said Akihiko hailed the determination with which PNG was pursuing its budget repair and reconstruction programme.
He noted the importance of the 13-year budget repair plan, as well as the positive start to a funded programme with the IMF.
Jica has been supporting PNG’s development since 1974, with the first project being the national fisheries sector in Kavieng.
“They have provided a broad range of support covering technical assistance, training, grants and loans exceeding K2.4 billion since,” Ling-Stuckey said .
“They have been a valuable development partner and their projects and loans have assisted in increasing our exports, our incomes and jobs.”