BSP still milking taxpayers for Solwara 1 loan

BSP profits at taxpayers expense for a loan that it should never have given.

If the Fleming had any conscience the bank would write off the loan

Fleming: Payments For Solwara Loan Made Since Day 1

Matthew Vari | Post Courier | 2 September 2019

Payments for the State’s loan from Bank South Pacific for its 15 per cent stake in the now defunct Solwara 1 project have been made since day one.

The K375 ($120) million bullet loan taken out by Kumul Minerals Holdings Limited subsidiary Eda Kopa in 2014 will fully mature in 2021 according to BSP Group CEO Robin Fleming.

Mr Fleming was referring to queries from stakeholders, at BSP’s half year presentation last week, if the bank was calling upon the State’s guarantee on the loan taken out for its equity in the project, which the bank has denied.

“There has been no call on the State, and Eda Kopa, the Solwara (1) loan is in the name of Eda Kopa. “It has an expiry date of 2021, but no guarantee has been called upon.

“All payments to BSP have been made since day one, the loan has been fully serviced and the manner which that loan was structured was that you have a borrower in the name of Eda Kopa Limited and co-underwritten or fully supported by the Independent State of PNG.

“In terms of the original approval of that facility, which doesn’t mature until 2021, all payments have been made whenever they are due,” Mr Fleming said.

He said discussions really are with Kumul Minerals who owns Eda Kopa to clean up their own balance sheet and possibly look to have it more directly with the Independent State of PNG which provides the guarantee.

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Filed under Financial returns, Papua New Guinea

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