Under the International Monetary Agreements Act 1947, the Treasurer is required to release and table in the Parliament a statement that describes the nature and terms of an agreement entered into by Australia to provide financial assistance to another country, and that details why such an agreement is in Australia's national interest.
This National Interest Statement relates to the Loan Agreement between the Commonwealth of Australia and the Independent State of Papua New Guinea that was signed on 22 November 2020. The agreement is for a loan of $140 million in addition to refinancing the US$300 million loan made through Export Finance Australia in November 2019.
The loan has been entered into to support Papua New Guinea’s deteriorating fiscal position and reform actions Papua New Guinea is progressing under an International Monetary Fund Staff-Monitored Program.
This loan reinforces the already strong ties and special relationship that Australia has with Papua New Guinea. Providing this loan to Papua New Guinea enhances Australia’s diplomatic and economic interests by supporting the prosperity and stability of Papua New Guinea and the region. Our loan reflects our deep national interest in Papua New Guinea’s economic success and our respect for Papua New Guinea’s sovereignty.
Further information can be found in the National Interest Statement. Further information on Australia’s partnership with Papua New Guinea can be found on the Department of Foreign Affairs and Trade website.