Papua New Guinea has secured a $US285 million loan from the Japan International Cooperation Agency to support the 2021 budget and boost Covid-19 responses.
Downtown Port Moresby, Papua New Guinea. Photo: RNZ / Johnny Blades
After the loan agreement was signed in Port Moresby, Treasurer, Ian Ling-Stuckey said the national revenue dropped by 20 percent last year due to the pandemic.
He said the government had reached out for international support to sustain the devastated economy.
The National newspaper reports the loan is in line with the government policy to replace expensive commercial loans with cheaper transitional financing.
The funds will reportedly support regional health centres so they can address Covid-19.
JICA will disburse about $US281.5 million to aid the national budget with an interest rate of 0.1 percent per annual and four-year grace period.
Meanwhile, the number of Covid-19 cases in Papua New Guinea continues to rise.
The National Pandemic Response Controller reported 87 new cases in the past day , taking PNG's total to 1,670.
It means that in the past five weeks, PNG has reported about 800 new cases.
