Papua New Guinea: Request for Disbursement under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea

IMF Staff Country Reports, June 26, 2020

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Papua New Guinea: Request for Disbursement under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea

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Bibliographic details

• Published: June 26, 2020
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513548708.002

Summary

• The COVID-19 pandemic erupted just as the government was beginning to implement wide-ranging fiscal, foreign exchange, structural, and governance measures under a Staff-Monitored Program (SMP).
• The authorities have reaffirmed their commitment to these reforms.
• The impact of the crisis is generating balance of payments and fiscal gaps of 4 and 3 percent of GDP, respectively.
• In the near term, risks are primarily on the downside, especially if there is a widespread local outbreak of the virus.
• Papua New Guinea’s longer-term outlook remains positive, largely reflecting the likelihood of major resource sector projects.

Main themes and findings

• Fiscal and policy context:
  • Government began implementing fiscal, foreign exchange, structural, and governance measures under an SMP prior to the pandemic.
  • Authorities reaffirmed commitment to those reforms despite the crisis.
• Crisis impact:
  • Balance of payments gap: 4 percent of GDP.
  • Fiscal gap: 3 percent of GDP.
• Risks:
  • Near-term risks are primarily on the downside.
  • A widespread local outbreak of COVID-19 would materially increase downside risks.
• Outlook:
  • Longer-term outlook is positive, reflecting the likelihood of major resource sector projects.

Subjects and keywords

• Subject: COVID-19, Expenditure, External debt, Foreign exchange, Health, Public debt
• Keywords: COVID-19, CR, financial support, Global, government, IMF financing support, IMF lending tracker, ISCR, PNG economy, PNG government, PNG Treasurer

Source: Papua New Guinea: Request for Disbursement under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Papua New Guinea (IMF Staff Country Reports 2020, 211).

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