Sovereign bond still on the table for 2017

Secretary Vele taking questions during the 2017 Budget Press Lockup

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

DESPITE its failure to attract the US$1 billion targeted late last year- the national government, through the treasury department says it is in a better position to carry out the sovereign bond roadshow, in a bid to raise financing for general financing of the country’s needs.

Department of Treasury Secretary Dairy Vele stated that the country’s state of affairs in its financial institutions, processes, and prudence being major factors in getting the funds needs for the bond.

“I’ve always like the bond because it requires discipline. You have to put your best foot forward; you have to get your house in order to go into the international bond market,” he said

“That means that all of us up here have to make sure that we are world class, the institutions are world class- that there is institutional development, that we are able to maximize our opportunities to protect our opportunities.”

“Is it there to just restructure the debt? No. it is there just for general financing. Once you do it, you can go out and do it again. We thought we would do it (2015), we were ready to do it, but market conditions weren’t right.”

“The best thing is that if we are to do it now we are in the best position ever, all the documentation and the things that goes with these types of things are ready, our accounts are getting up to speed.”

He said with supplementary budgets made over the last two years- the concept of the bond was not viable when the plan is about to be changed.

And this year alone we’ve got the US elections in the next couple of days and the American Thankgiving period.

“So are we confident of doing the bond? Absolutely it is just a matter of timing and that will be dictated by the banks that will be managing things on our behalf.”