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National Interest Statement: 2024 Loan Agreement between the Commonwealth of Australia and the Independent State of Papua New Guinea
Australia and Papua New Guinea (PNG) have signed a A$570 million Loan Agreement on 12 December 2024 to support PNG’s budget and economic reforms.
Purpose of the Loan Agreement
This loan was requested by PNG Treasurer, Hon Ian Ling‑Stuckey MP, to help cover PNG’s 2024 Budget financing shortfall. It also supports key reforms under PNG’s International Monetary Fund Extended Credit Facility and Extended Fund Facility Program.
Background and history
PNG’s economy is expected to grow by 4.9 per cent in 2024, but challenges remain, including:
- inflationary pressures
- a slowing global economy
- fiscal constraints.
This loan builds upon the support Australia provided to PNG in 2020, 2021, 2022 and 2023 to help with budget repair efforts and support the delivery of reform actions.
Australia–PNG partnership
Australia and PNG are sovereign partners who share unique and enduring connections underpinned by a special bilateral relationship including the Comprehensive Strategic and Economic Partnership.
It is in Australia’s interests to have an economically stable partner with sustainable fiscal management.
For more details visit the Department of Foreign Affairs and Trade website.
Legislation
This Statement is being tabled pursuant to the requirements of sections 8D‑8E of the International Monetary Agreements Act 1947 (IMA Act).
Under the IMA Act, 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.