World Bank to assess P.N.G.

Press, Volume CXV, Issue 34026, 15 December 1975, Page 17

World Bank to assess P.N.G.

(New Zealand Press Association—Copyright) PORT MORESBY, December 14. An economic mission from the World Bank will visit Papua New Guinea next month to check the country’s credit rating.

The Finance Minister (Mr Julius Chan) said in a statement today that the mission would assess Papua New Guinea’s ability to pay back loans now that it no longer has Australia as a guarantor. Before independence, Papua New Guinea negotiated five loan's from the World Bank group worth a total of $80.7 million but in each case Australia guaranteed the loans.

Papua New Guinea has since joined the World Bank and the body now needed to reassess it as a borrower and determine the extent to which it could have access to loans, Mr Chan said. He added that tl.e mission, which will arrive on January 26, would examine Papua New Guinea’s balance of payments and foreign exchange reserves, its growth

rate and administrative, budgetary, and wage policy as well as its political ityMr Chan was confident that the World Bank mission would find Papua New Guinea’s books in good order. Since the last mission from the World Bank visited Papua New Guinea in May, 1974, there had been enormous changes made by the Government, he said. The country now had its I own currency which will be j supported by the Govern- : ment’s “hard currency” poL icy.

It had also renegotiated the Bougainville copper agreement, reversed a trend of past difficulties in recruiting qualified staff, and increased budgetary independence under a democratic constitution, Mr Chan said.