Papua New Guinea: Requests for an Arrangement under the Extended Credit Facility and an Extended Arrangement under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for the Papua New Guinea
IMF Staff Country Reports, March 29, 2023
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- Canonical URL
- Papua New Guinea: Requests for an Arrangement under the Extended Credit Facility and an Extended Arrangement under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for the Papua New Guinea
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Bibliographic details
- Published: March 29, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400237898.002
Overview
- The paper presents Papua New Guinea’s Requests for an Arrangement under the Extended Credit Facility (ECF) and an Extended Arrangement under the Extended Fund Facility (EFF).
- The arrangement duration is 38-month.
- The arrangement is intended to support Papua New Guinea’s reform agenda to help protect the vulnerable and foster inclusive growth.
Program objectives and reform focus
- Strengthen debt sustainability.
- Alleviate foreign exchange shortages.
- Enhance governance and operationalize the anti-corruption framework.
- Support the authorities’ ambitious fiscal consolidation plans while avoiding a disruptive adjustment.
- Play a catalytic role with other development partners.
Medium-term outlook and expected impact
- The medium-term outlook is described as positive.
- There are prospects of new investments in the resource sector expected to boost growth, exports, and fiscal revenue collection.
- The ECF/EFF arrangements aim to:
- Address balance of payment needs.
- Rebuild the buffers needed to facilitate a gradual and orderly return to greater exchange rate flexibility.
- Finance the budget to support fiscal consolidation.
Program design, sequencing, and constraints
- Given institutional and technical capacity constraints faced by the authorities, reform measures supported by the program are:
- Streamlined.
- Focused.
- Carefully sequenced.
- Timely capacity development and advice from the IMF will support reform implementation throughout the duration of the program.
Content in this bundle
- Papua New Guinea: Executive Summary