Australian government supports Papua New Guinea’s budget with $570 million loan

ABC NEWS (Australia)

The Australian government has agreed to support Papua New Guinea’s budget with a $570 million loan. PNG correspondent Marian Fa’a reports from Port Moresby.

Transcript

00:00Papua New Guinea requested the support to help address shortfalls in its 2024 national

00:07budget.

00:08It's the fifth consecutive loan Australia has given the Pacific nation, adding up to

00:12more than $3 billion since 2020, outstripping lending from China and making Australia Papua

00:18New Guinea's largest bilateral creditor.

00:21The Australian government says ensuring economic stability in PNG is in Australia's national

00:26interest.

00:27As part of the loan agreement, the Commonwealth Government has sought assurances that PNG

00:31won't pursue uneconomic infrastructure projects, with the country agreeing to implement a screening

00:37process to ensure that foreign and domestic investment is economically viable.

00:41PNG is also required to participate in an economic reform program with the IMF aimed

00:47at addressing fiscal deficit and critical shortages of foreign exchange.

00:51The latter of those targets isn't showing many signs of improvement, prompting analysts

00:55to question whether the budget support is achieving its goals.

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