The International Monetary Fund Executive Board completed the sixth reviews of Papua New Guinea’s Extended Fund Facility and Extended Credit Facility arrangements and the third review of its Resilience and Sustainability Facility arrangement, triggering immediate disbursements of SDR 60.53 million under the EFF and ECF and SDR 59.22 million under the RSF. Total disbursements under the IMF-supported programs now amount to SDR 742.23 million. The IMF said program performance remained satisfactory, with the authorities continuing to implement fiscal, monetary and structural reforms. All quantitative performance criteria and indicative targets for end-December 2025, and all indicative targets for end-March 2026, under the EFF and ECF were met. The six structural benchmarks due were met or implemented with delay, and three RSF reform measures were implemented. In its assessment, the IMF said growth is projected to slow to 3.8 percent in 2026 after 5.6 percent in 2025, while headline inflation is expected to rise modestly to 4.8 percent. The Board highlighted the need to continue fiscal consolidation and revenue mobilization, tighten monetary policy in line with the exchange rate regime, strengthen liquidity management and lender of last resort capacity at the Bank of Papua New Guinea, improve AML/CFT and anti-corruption arrangements, and advance climate resilience reforms.
International Monetary Fund2026-06-08
International Monetary Fund completes Papua New Guinea program reviews and releases SDR 119.75 million under reform and climate facilities
The IMF Executive Board completed the sixth reviews of Papua New Guinea’s Extended Fund Facility and Extended Credit Facility and the third review of its Resilience and Sustainability Facility, unlocking immediate disbursements of SDR 60.53 million under the EFF/ECF and SDR 59.22 million under the RSF, for total disbursements of SDR 742.23 million. The IMF found performance satisfactory, with all quantitative criteria and indicative targets met and most structural benchmarks implemented, and projected slower growth and modestly higher inflation. The Board urged continued fiscal consolidation, revenue mobilization, tighter monetary policy, stronger liquidity management and lender-of-last-resort capacity, enhanced AML/CFT and anti-corruption frameworks, and further climate resilience reforms.