Vila Times

PNG’s Government wants to restructure country’s debt

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Papua New Guinea deputy Prime Minister and Minister for Treasury Charles Abel has given assurance that the government is in talks to restructure the country’s debt payments.

He said discussions with the World Bank on restructuring existing debt with concessional funding will further simplify debt that has been established over recent decades and reduce servicing costs, reports Post Courier.

“Papua New Guinea has never defaulted on a debt payment, and this is respected by global institutions such as the World Bank and the International Monetary Fund.

“We are in talks with the World Bank and IMF so that we can bring together a number of scattered debts and consolidate these under a single debt facility at a much more favourable interest rate.

“Debt consolidation will save public funds and retire outstanding loans quicker than had previously been possible,” he said.