NO.090

The Australian Government today agreed to provide a US$80 million financial support

facility to.png following advice from the.png Government and the International Monetary

Fund (IMF) mission that.png has agreed on a Letter of Intent in support of its request for

a Stand-by Arrangement with the IMF. This delivers on a commitment made by the Prime

Minister, Mr Howard, during his October 7-9 visit to Port Moresby.

This short-term facility will bolster.png’s reserves, allow for a reduction in.png

Government debt to the Bank of.png, and contribute towards a further strengthening of

confidence in the.png economy.

Australia’s assistance is further evidence of our commitment to.png and follows an

agreement by Australia on 1 September to bring forward some $30 million in aid budget

support payments to.png.

The Treasurer visited Port Moresby early in the life of the new.png Government and both

he and Prime Minister Howard have offered assurances to Prime Minister Morauta of

Australia’s commitment to support his Government’s reform efforts.

The Treasurer met with both IMF Managing Director, Michel Camdessus, and World Bank

President, James Wolfensohn, in Washington in late September to underline the importance

Australia attaches to.png’s re-engagement with the IMF and the World Bank.

Today’s announcement of a financial support facility is designed to support.png’s

efforts to secure agreement with the IMF and the World Bank on programs which will provide

additional and on-going support for the.png Government’s economic and governance

reform agenda.

CANBERRA

15 December 1999