Japan Provides K1 Billion Loan to PNG
To finance its National Budget for 2021, repay its debts, and stabilise the economy, Japan has provided a K1 billion concessional loan to Papua New Guinea.
Japan is also giving K32 Million grant for the PNG electrification partnership as agreed with the United States, Japan, New Zealand, and Australia.
According to Japanese ambassador Kuniyuki Nakahara, the loan comes with a rate of 0.01 per cent a year for repayment of 15 years.
“PNG can enjoy a grace period of four years and can begin to pay back the debt after its economy recovers,” he said. “This K1 billion is the largest ever since the start of Japan’s official development assistance to PNG. Since the beginning of 2020, the whole world has been suffering from the outbreak of the Covid-19. The world economy has also suffered and the PNG economy is no exception.”
The economic growth of PNG is expected to drop by 3.3 percent in 2020. “Under such a situation, our bilateral relationship between Japan and PNG should remain solid,” he said.
In an August visit last year, Japan foreign minister Motegi Toshimitsu asked his Government through the Jica Covid-19 crisis response emergency support loan to provide the loan to Papua New Guinea.