IMF Completes Second Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements for Papua New Guinea

The International Monetary Fund (IMF) Executive Board has successfully completed the second reviews under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements for Papua New Guinea. The decision, finalized on July 14, enables the country to access approximately $123 million in funding, bringing the total disbursements under the arrangements to about $246 million.

The reviews indicate that Papua New Guinea has made significant strides in implementing its economic reform program despite facing numerous challenges. The country’s efforts to stabilize the economy, improve fiscal management, and implement structural reforms were particularly highlighted. The IMF’s support is aimed at helping Papua New Guinea achieve sustainable economic growth and address key vulnerabilities.

The IMF praised the government's commitment to fiscal consolidation, which includes measures to enhance revenue mobilization and expenditure control. Reforms in the financial sector and efforts to improve governance and transparency were also commended. These steps are expected to strengthen the economic framework and create a more conducive environment for investment and growth.

Papua New Guinea's economy has been affected by external shocks, including fluctuations in commodity prices and the global economic slowdown. However, the IMF noted that the government’s proactive policy measures have helped mitigate these impacts. The continuation of the ECF and EFF arrangements will support the country’s efforts to navigate these challenges and achieve macroeconomic stability.

The IMF Executive Board emphasized the importance of maintaining the momentum of reforms and ensuring effective implementation. The board also underscored the need for continued support from the international community to complement the IMF’s efforts.

As part of the reviews, the IMF and Papua New Guinea authorities discussed the country’s economic outlook, risks, and policy priorities. The ongoing partnership between the IMF and Papua New Guinea aims to build a resilient economy capable of withstanding future shocks and promoting inclusive growth.

The successful completion of the second reviews under the ECF and EFF arrangements marks a significant milestone for Papua New Guinea as it continues on its path towards economic recovery and development.