The Australian Government has provided a A$133 million loan (equivalent to US$80 million) to the Government of Papua New Guinea. This loan has been provided following a request from the IMF and is in support of the PNG Governments recent agreement with the IMF on a Standby Arrangement and the World Bank on an Adjustment Loan.
This assistance replaces a short-term financial support facility of US$80 million that was provided by Australia in December last year.
The loan will support PNGs foreign reserves and the PNG Governments efforts to reduce its debt to the Bank of PNG. It will also underpin PNGs on-going economic and governance reform efforts. In so doing, Australias loan will also contribute to a further strengthening of investor and donor confidence in the PNG economy.
The provision of the loan is recognition of the considerable gains that have been made in Papua New Guinea under the leadership of Prime Minister Sir Mekere Morauta, and reflects the confidence the Australian Government has in the Morauta Governments commitment to further advancing Papua New Guineas important reform agenda. It also complements the significant financial and technical assistance already provided by Australia.