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Report: Swiss regulator contacts UBS over 2014 Papua New Guinea loan

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Report: Swiss regulator contacts UBS over 2014 Papua New Guinea loan

Switzerland's financial watchdog has reached out to UBS Group AG regarding a 2014 loan to the Papua New Guinea government, which resulted in a review of whether the country breached its own borrowing rules, Reuters reported, citing a statement from Finma.

Papua New Guinea's Ombudsman Commission froze the deal in March 2014 while investigating whether Prime Minister Peter O'Neill followed the correct process while borrowing from UBS. The government wanted the loan to buy a stake in the oil and gas company Oil Search.

Finma said it was in contact with UBS but it did not provide further details, according to the March 11 report.