The IMF has offered Papua New Guinea a loan of just under US $1 billion.
Government comment on it has been muted. The daily press has today revealed why.
The IMF has imposed some heavy conditions on its loan.
The toughest is that PNG must devalue the Kina...probably substantially.
There has been a reluctance from successive governments to entertain devaluation.
It would make imports dearer, and probably further lower living standards.
Last week the PNG Government received a wake up call when it comes to hard drug running.
A light aircraft loaded with hard drugs worth $15 million was apprehended at Monto airport in Queensland where it had landed to refuel.
The aircraft began its trip in Bulolo, a community between Port Moresby and Lae.
Now fortunately PNG does not produce hard drugs, or we don't think it does.
So it has to be assumed the drugs were shipped from somewhere in Asia. One of those arrested was from China. Several were Australians. They all face long prison terms.
The AFP, Queensland Police, Border Force, and the PNG Police have done a highly professional job on this case.
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