INTERNATIONAL BONDS MARKETS AND BANKS DON'T TRUST O'NEILL LIES AFTER SOVEREIGN BOND FAILURE


by MICHAEL JOSEPH PASSINGAN

 On 17 March PNG Blogs revealed that Peter O’Neill has secretly begged the World Bank for a loan of up to K1 billion.

 On 22 March we revealed that international agencies are about to downgrade Papua New Guinea’s credit rating once again – after already being downgraded late last year.

 Now some good news – the economy and national finances have been damaged so badly by O’Neill’s reckless borrowing and wasteful spending that his proposed $US1 billion sovereign bond issue is dead - D.E.A.D.

 This is good news because it means the nation’s indebtedness will not increase by $US1 billion in the immediate future. It means the long-suffering people will not have more debt to repay each year.

 IT MEANS THERE WON’T BE $US1 BILLION FOR O’NEILL TO STEAL AND WASTE

 The failure of the bond issue proves that international money markets won’t lend a toea to O’Neill’s corrupt regime unless it is at unaffordable penalty interest rates.

 Such unaffordable interest rates would have taken annual interest payments on the national debt above K3 billion and would have worsened the suffering already being felt by the people in the streets and the villages.

 The failure of the sovereign bond issue and the credit ratings disaster are proof that O’Neill, PNC and their cronies and colleagues have destroyed the nation’s economy.

 Its shows that O’Neill, Treasury Secretary Daire Vele, Bank of PNG chief Loi Bakani and economic adviser Jakob Weiss are fools and liars.

 Their spin, faithfully repeated by their paid dogs at the Post-Courier, the National and EMTV, is not to be believed.


 MORE LIES FROM THE KING OF LIES.

 O’Neill blamed everyone and everything except himself and his greed and stupidity for the failure of his sovereign bond issue.

 He said the global market is affecting all countries worldwide and not only PNG which is the reason for not going ahead with the borrowing.

 The real factual truth that O’Neill, Vele, Bakani and Weiss want to hide is that no-one will lend to a country that can not repay its debts.

 The international bond markets are operating as usual.

 The problem is O’Neill and his advisers – banks don’t believe their bullshit.

 THE SECRET WORLD BANK LOAN BID IS MORE PROOF THAT THESE KON MEN ARE SENDING PNG TO RUIN.

 O’Neill has finally confessed that the central bank – being advised by his crooked crony Jakob Weiss – is begging the World Bank for $US250 million (almost K800 million).

 O’Neill needs this quick and dirty cash injection so he can try to repair the damage he, Weiss, Vele and Bakani have done to the exchange rate and foreign reserves.

 Thanks to these four, PNG’s foreign reserves are getting closer and closer to the lowest levels ever – set by O’Neill’s crooked PNC predecessor Bill Skate. The exchange rate is also falling to the record lows – also set by Skate.

 It is notable that during the Skate years O’Neill was in charge of PNGBC, stealing as much as he could and writing off loans to his cronies, Weiss was an adviser to the central bank, and Daire Vele’s father Morea was BoPNG Governor.

 Together, all three have a history of theft, economic mismanagement and reckless financial behaviour.


 THE SO-CALLED IMF LOAN IS MORE PROOF THAT O’NEILL HAS DESTROYED THE ECONOMY AND NATIONAL FINANCES.

 For a start the secret IMF loan will not be an IMF loan, as O’Neill claims. 

 It will be a line of credit from the World Bank’s International Finance Corporation and will be paid to the commercial banks, BSP, Westpac and ANZ.

 EVEN THE IFC, A LENDER OF LAST RESORT, DOESN’T TRUST O’NEILL AND HIS CRONIES.

 PNG was originally seeking a line of credit of $US300 million (about K1 billion). But the IFC wasn’t prepared to lend that much, and instead discussions are centred on a maximum of $US250 million (about K800 million).

 A problem for PNG is that there is a backlog of billions of kina worth of requests for foreign exchange because Loi Bakani and Jakob Weiss at the Bank of PNG have limited supply of forex in a desperate attempt to stop the collapse of the kina.

 A $US250 million loan won’t solve the problem. It will be a quick fix and just delays the crisis for a few more months (by which time O’Neill is into the 12 month grace period before the 2017 elections).

 It’s a fake loan being arranged to buy some time for O’Neill and his cronies.

 The line of credit, if it is approved, will do nothing to alleviate the suffering of the people.

 What it will do is enable the private sector to quickly repatriate profits overseas. Companies will say they are using the money to fund imports, but the reality is that most will simply park as much of it as possible offshore.

 It will not be kept in PNG and invested in domestic assets and growth

 The only beneficiaries in the short term will be private companies (mostly foreign) and the banks (mostly foreign).

 And who in the end will pay to bail out mainly foreign companies and mainly foreign banks? The long-suffering people of PNG of course.

 The line of credit will enable the banks to take on more government and state-owned enterprise debt, which will in turn prop up the rotten O’Neill Regime.

 The accompanying graphs show how the commercial banks, led by BSP, have fueled O’Neill’s debt feeding frenzy.

 The IFC line of credit will just make matters worse.

 It will for sure add to the debt burden that Papua New Guineans must repay.

 O’Neill is telling everyone it is an IMF loan to mislead people that this is a proper structural adjustment program.

 It’s not and if it is approved will do nothing to consolidate and rehabilitate government finances, expenditure prioritization and control of the O’Neill Regime’s rampant corruption.

 It will end up supporting and feeding O’Neill’s corruption, waste and mismanagement. And in a few months time, a new loan will be needed and the people of PNG will be poorer.

 All of PNG, except Peter O’Neill, his greedy cronies and banks and foreign companies, hope that the World Bank sees sense and rejects this cheap and dirty deal.

 Because the only thing that can save PNG now is a new Government armed with a proper Structural Adjustment Program to attack O’Neill’s legacy of corruption, reckless borrowings and wasteful spending.

Popular posts from this blog

HIGHLANDS FRAUD F*CKS RUNNING GOVERNMENT AGENCY,,,

Image
A Fraudster and unqualified person has been shortlisted for NEC submission for the position of CEPA Managing Director. The candidate in question is Jude Tukulyia. His academic credentials are subject to scrutiny. Further investigation is required to verify the authenticity and legitimacy of his qualifications, particularly the reported diploma in accounting, Bachelor of Laws, MBA from Divine Word and UPNG respectively. It is very suspicious and unprofessional  when the Minister for Environment Conservation and Climate Change, Hon Simo Kilepa, wrote to UPNG Vice Chancellor asking to confirm Jude’s questioned education qualifications. This very due diligence work is the core responsibility of the Public Service Commission and Department of Personnel Management. What authority does the portfolio minister have to write to the Universities? Dumbfounding indeed if one asks. Ulterior motives written all over the letter. This amounts to  Questionable Academic Qualifications of Mr Tukulyia.    
Read more

AUGUSTINE MANO PNG'S PREMIER CORPORATE CROOK

Image
by  MICHAEL J. PASSINGAN In a significant setback for Mineral Resources Development Corporation (MRDC), the Supreme Court of Papua New Guinea has dismissed the company's appeal to stop criminal investigations into its dealings with landowner funds held in the Pacific Balance Fund (PBF). The court ruled that MRDC's appeal was an "abuse of process" and ordered the company to pay costs of the proceedings. MRDC, a unit holder in PBF, had taken legal action against the National Court's decision to dismiss its case, arguing that the court had no jurisdiction to hear the matter. However, the Supreme Court disagreed and held that MRDC's appeal was nothing more than an attempt to interfere with the police's criminal investigative process. The court found that MRDC had no authority to conducted its own investigation into the activities of the Melanesian Trustee Services Limited (MTSL), the fund manager of PBF, and that its actions were in violation of the Trust Deed
Read more

PNG, VERY RICH YET STILL A VERY VERY POOR COUNTRY

Image
by GARY MONDULAME Papua New Guinea (PNG), a nation blessed with abundant natural resources, continues to grapple with economic challenges that belie its potential wealth. The nation's economic narrative is a paradox—rich in resources yet burdened by poverty. The explanation for this paradox lies not only in economic mismanagement but also in deep-seated corruption that has permeated the political landscape since independence in 1975. Following its independence from Australia, PNG was entrusted to leaders who lacked a vision for a holistic national development. This absence of foresight is evident from the lack of long-term development plans that could have distributed the country’s wealth fairly across all regions and communities. Successive governments failed to establish foundational strategies such as building satellite townships or creating robust rural housing schemes. Instead, they resorted to short-term, reactive measures that did not foster sustainable growth. The nascent l
Read more

BLIND LEADING THE BLIND, WHY THE PNG ECONOMY STILL SUCKS

Image
Elizabeth Genia, Acting Governor Bank of PNG (BPNG) by MICHAEL JOSEPH PASSINGAN The economy of Papua New Guinea (PNG) is at a crucial juncture. Despite some signs of recovery, the country faces several structural challenges that continue to impede its economic progress. The March 2024 Monetary Policy Statement from the Bank of Papua New Guinea sheds light on these issues, providing a comprehensive overview of the economic landscape and the policy responses being implemented to navigate through these turbulent times. In 2023, PNG's economy grew by a modest 1.4%, a significant slowdown from the 5.2% growth witnessed in 2022. This tepid growth is largely attributed to delays in major projects and ongoing economic issues that have not been fully resolved. The anticipated growth for 2024 is around 3.0%, buoyed by the resumption of production at the Porgera gold mine. While this marks an improvement, it remains subdued compared to the potential of this resource-rich nation. One of the mo
Read more

James Marape's Missteps Openly Exposed at Australian Forum

Image
by  MICHAEL J. PASSINGAN  In a recent event that highlighted the complexities of international diplomacy and governance, Papua New Guinea's Prime Minister, James Marape, faced a challenging situation during his appearance at the Lowy Institute in Sydney, Australia. The Lowy Institute, known for its role as an independent think tank focusing on international policy, particularly in the Asia-Pacific region, provided a platform for a candid assessment of Marape's governance. Following his formal address, Marape engaged in a dialogue with Dr. Michael Fullilove AM, the Executive Director of the Institute. Dr. Fullilove, a respected figure in public and international policy, scrutinized Marape's past promises and statements, contrasting them with the current state of affairs in Papua New Guinea (PNG). The discussion took a critical turn as Dr. Fullilove revisited Marape's 2019 speech at the same venue, where Marape had outlined his vision for PNG in a speech titled “A New Boo
Read more

MARAPE & PAITA ABOUT TO SIGN AWAY PNG GOLD

Image
By: Andrew Arthur Prime Minister Hon. James Marape and his planning minister Reinbo Paita are the parties behind the theft of all Papua New Guinea’s gold for the next 100 years! They have given approval for the STATE of Papua New Guinea to sign away all gold rights to an Australian paper company in Refinery Holdings PTE LTD. First, they have done the deal with a paper company even before there is a LAW that says they have the right to do the deal. We see how the real manipulation works out. Marape and Paita now need to get the law passed by Parliament. The law is before the Parliament to set up Papua New Guinea’s first National Gold Corporation. The National Gold Corporation Bill first surfaced in 2012 but successive Government of Sir Michael Somare and Hon. Peter O’Neill, in their wisdom, had refused to pass this Bill as there have been some sinister motives and constitutional issues associated with the Bill. The new bill will allow Refinery Holdings LTD PTE to own 70% of the National
Read more

A Call for Local Ownership and Fairness

Image
by JUSTIN PARKER In recent discussions surrounding the establishment of a gold refinery in Papua New Guinea (PNG), concerns have been raised regarding various aspects of the proposed project. Spearheaded by foreign investors, the initiative has sparked debates over ownership, exclusivity, tax concessions, underwriting, management rights, control over currency, legal protections, and historical failures. These concerns, if unaddressed, could potentially undermine the interests of PNG and its people, particularly the hardworking alluvial miners who form the backbone of the nation's mining sector. At the heart of the issue lies the question of ownership. The proposed ownership structure, favoring foreign investors with a substantial 70% stake, raises eyebrows, especially considering PNG's past experiences with failed ventures like seabed mining. Instead of ceding majority control to foreign entities, many argue that PNG should assert full ownership over the refinery. With the coun
Read more