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AUSTRALIA WELCOMES
IMF STAND-BY ARRANGEMENT FOR
PAPUA NEW GUINEA
The Australian Government
welcomes the International Monetary Fund (IMF) approval of a
US$115 million Stand-by Arrangement (SBA) for Papua New Guinea.
The SBA will support the PNG Government's reform program and
recognises the significant progress made by Papua New Guinea
to date.
The decision signals international support for the strong economic
reform program introduced by the PNG government under the leadership
of Prime Minister Morauta. Considerable gains have already been
made in stabilising the economy, balancing the budget, consolidating
the independence of the central bank and advancing the urgent
task of structural reform.
The IMF announcement will fortify that progress and will do much
to strengthen investor confidence in Papua New Guinea and to
return the Papua New Guinea economy to a path of sustained growth
and prosperity.
Australia has actively supported the PNG Government's reform
efforts and has already provided a A$130 million financial support
facility to Papua New Guinea - announced by the Prime Minister
during his October 1999 visit to Papua New Guinea - and would
provide further financial assistance in support of an IMF and
World Bank program. Australia also has an ongoing program of
technical assistance in the areas of budget and economic planning,
statistics, privatisation, taxation and other key areas of economic
management.
The Australian Government has also encouraged other donors, including
the Friends of Papua New Guinea group, to support the Papua New
Guinea Government's reform efforts. We hope other donors will
now confirm their commitments to provide balance of payments
support for the Papua New Guinea government to finance the US$180
million financing gap identified by the IMF for 2000.
Australia strongly endorses the IMF decision to renew its partnership
with Papua New Guinea and will now begin discussions with Papua
New Guinea on further Australian financial assistance in support
of its reform program.
31 March 2000
Contacts: Innes Willox 02 6277
7500
Niki Savva 02 6277 7340
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