IMF approves new $A407m loan for Papua New Guinea

Papua New Guinea flag
A new loan to Papua New Guinea will enhance governance and anti-corruption frameworks, the IMF says. -AAP Image

The International Monetary Fund has approved a new two-year loan arrangement for Papua New Guinea for about $US259 million ($A407 million) to help the Pacific island nation improve climate resilience.

The IMF Executive Board announced on Thursday that it had also completed third reviews under existing loan arrangements, providing PNG with immediate access to about $US125 million, the IMF said.

In July, the IMF board's second review noted PNG "authorities' strong commitment to reforms."

The International Monetary Fund granted PNG immediate access to a $US125 million loan. (EPA PHOTO)

"The program will continue to support Papua New Guinea's reform agenda, help protect the vulnerable and foster inclusive growth, with a focus maintained on strengthening debt sustainability, alleviating FX shortages, and enhancing governance and anti-corruption frameworks," it wrote.