Papua New Guinea does not have debt problem: PM

The prime minister of Papua New Guinea (PNG) said Thursday that country does not have a debt problem and it is "insulting" when critics attempt to undermine confidence by comparing the country to Greece.

Prime Minister Peter O'Neill told the PNG investment and infrastructure summit in Brisbane, Australia, that his country is enjoying a historically strong period of economic expansion.

However, like others, PNG is having to adjust to global factors beyond its control, having cut growth forecast from 15.5 percent to 11 percent for the 2015 fiscal year, he said.

PNG's government announced in early August it was introducing a supplementary budget to address the increasing budget deficit highlighted in the Treasury's Mid-Year Economic and Fiscal Outlook Report.

Failing to adjust expenditure in the 2015 fiscal year, the report warned the budget deficit would increase from 4.4 percent of GDP to a record 9.4 percent, consequently increasing the public debt to GDP ratio to 41.3 percent, above that permitted by law.

O'Neill told the summit PNG's current debt levels are around 33. 2 percent of GDP, below the country's legislated debt limit of 35 percent.

"Our government is determined to ensure that external factors do not impact on our core policy areas - of free education, the provision of universal healthcare, improving law and order, and investing in key economic infrastructure," O'Neill said.

O'Neill said having to make adjustments has been a wake up call for PNG after the hype surrounding anticipated revenue from LNG and other mineral exports.

"Through careful management we will weather this economic storm and come through even stronger at the end of it," O'Neill said. Endi