Papua New Guinea has concluded its first overseas loan since achieving Self-Government at the beginning of the month.
Papuan New Guinea flag flying
Delegates entering the Ministry of Information
Mr. Chan speaking
Mr. Johnaton and on his left Mr. Somare listening
Mr. Murata speaking
Mr. Chan signing agreement (2 shots)
Mr. Murata signing agreement
Mr. Somare looks on
Script is copyright Reuters Limited. All rights reserved
Background: Papua New Guinea has concluded its first overseas loan since achieving Self-Government at the beginning of the month.
The loan agreement was concluded at a formal ceremony at Port Moresby on Thursday (6 December), it provides for the raising in Japan of a loan of five billion yen (approximately 12 million Australian dollars) by means of a private placement. The loan, which is being managed by the Industrial Bank of Japan on behalf of 12 participating banks, matures in 1985 with repayments starting in 1979. The interest rate is 8.2%.
The agreement was signed on behalf of the Papuan New Guinea Government by the Minister of Finance Mr. Julius Chan, and on behalf of the Industrial Bank of Japan by Mr. Murata.
Speaking at the ceremony Mr. Chan thanked the Japanese Ministry of Finance for allowing the loan to take place and the Australian Government for agreeing to guarantee the issue.
Mr. Chan recalled that this was Papua New Guinea's second major international loan, the first having been concluded with the West German Government in June this year. The Minister went on to say that his government attached much importance to Papua New Guinea becoming known in the international financial community. To this end, Mr. Chan concluded, they were hoping to raise another overseas loan in Europe in the first half of 1974.
Also attending the ceremony were Mr. Michael Somare the Chief Minister of Papua New Guinea and MR Les Johnston formerly the Australian Administrator and now the Australian High Commissioner.