Polye said in the short run, the loan will ease foreign exchange shortage but in the long run, it will make PNG’s economic and financial problems worse. He highlighted this during a media conference at Parliament house today.
He said O’Neill had destroyed PNG’s economic reputation overseas and had made unscrupulous lenders realise how desperate the Prime Minister is adding that the Credit Suisse loan is set at 7% interest in US dollars and the standard inter-banking interest rate (known as LIBOR) is about 1%.
