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.
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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.