‘Brexit’ Could Affect Pacific Capital Raising Efforts

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The impact of Britain’s decision to leave the European Union could affect Pacific Island countries like Papua New Guinea, who are trying to seek international capital.

  • By Radio New Zealand
European Union and the United Kingdom flags.
Photo:AFP

The impact of Britain’s decision to leave the European Union could affect Pacific Island countries like Papua New Guinea, who are trying to seek international capital.

That’s according to Yurendra Basnett, the country economist and team leader of the Asian Development Bank’s mission to Papua New Guinea.

Mr Basnett says one of the longer term effects of a British exit — or ‘Brexit’ — would be the need to renegotiate partnership agreement with Europe in the Pacific.

The provisional agreement between the European Union and PNG provides the country with duty free access to Europe and Britain.

“One of the things, I suspect, perhaps that might be an immediate impact is raising capital globally at the moment is going to be quite challenging given the impact of Brexit on the international market,” she said.

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