As partners in the region, the bond between the Commonwealth of Australia and the Independent State of Papua New Guinea is one forged from enduring friendship and shared mutual interests.
Following on from a bilateral loan made in 2020, Australia has taken an active role in supporting the fiscal stability of Papua New Guinea through the pandemic, which has so severely impacted the economy of Papua New Guinea, as well as the fiscal outlook of the budget.
PNG Prime Minister, Mr James Marape, has successfully managed to secure a loan agreement between the Commonwealth of Australia and Papua New Guinea that will cover A$650 million in the budget shortfall. This will assist the Nation in implementing its economic plans while mitigating the ongoing impact of the COVID-19 Pandemic, and underlies the commitment and partnership between Papua New Guinea and Australia.