More aid
p. 26 · Read in the full issue
ADDITIONAL aid will flow to Papua New Guinea to help the country lessen the effects of the current economic crisis. Both the International Monetary Fund and the Australian Government have agreed to provide more short-term assistance, but the Government in Port Moresby has acknowledged that it must seek alternative sources of money in light of Australia’s professed eargerness to lighten its part of the burden.
The International Monetary Fund will provide KBB million (US$9O.6 million) to help Papua New Guinea shore up its overseas reserves. In addition, the World Bank has approved a K 48.9 million (US$5O.3 million) loan toward the Government’s structural adjustment programme, Australia has agreed to additional aid of As2o million (U 5515.23 million) even though that country’s foreign minister, Gareth Evans, has warned Port Moresby that Australia’s capacity to help Papua New Guinea is limited.
Prime Minister Rabbie Namaliu said the country would be looking for new sources of aid, and that the shift from traditional sources was inevitable. □