Former PM O’Neill slams government loan

Former Prime Minister and Ialibu Pangia MP, Peter O'Neill, has criticized the government's decision to secure a loan of $570 million [approximately K1.5 billion] from the Australian government.

According to a report by ABC, the Australian Government has agreed to support Papua New Guinea's national budget following a request from Treasurer Ian Ling Stuckey in August of last year.

The 20-year loan will assist the country in addressing shortfalls in its 2024 budget and implementing economic reforms.

The agreement was reached last December but was only made public recently through the Australian national interest statement.

Mr. O'Neill, however, disagreed with the government's proposal to obtain a loan, as this would add an additional burden to the existing debt, which has surpassed K60 billion.

O'Neill has urged the Marape-Rosso government to take the management of the country's affairs seriously, especially in light of the challenging economic situation.

“There is no such thing as a free lunch. The loan is in addition to an already unsustainable level of debt, which now exceeds K60 billion,” O’Neill told NBC News.

“The government needs to reduce its unhealthy spending habits and eliminate politically motivated programs and projects.

“We need to cut costs and live within our means. The rising cost of living is placing pressure on families across the country, and the government must take a serious approach to managing the economy.”

This will be PNG's fifth loan since 2019, totaling over $3 billion, or approximately K7 billion, since Prime Minister James Marape assumed office.

Meanwhile, NBC News is awaiting a response from the prime minister and Treasurer Ian Ling-Stuckey regarding this matter.