Debt Management Performance Assessment : Papua New Guinea
At the request of the Government of Papua New Guinea (PNG), a mission comprised of Jeff Chelsky (PRMVP, mission lead), Tomas Magnusson (BDM, consultant), Greg Horman (BDM, consultant) and Tim Bulman (EAP, country economist), visited Port Moresby be...
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| Format: | Economic & Sector Work |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2010/12/18132169/papua-new-guinea-debt-management-performance-assessment-dempa http://hdl.handle.net/10986/16227 |
| Summary: | At the request of the Government of
Papua New Guinea (PNG), a mission comprised of Jeff Chelsky
(PRMVP, mission lead), Tomas Magnusson (BDM, consultant),
Greg Horman (BDM, consultant) and Tim Bulman (EAP, country
economist), visited Port Moresby between November 22nd and
December 3rd to undertake a DeMPA exercise. The team met
with officials from the Department of Treasury, Bank of
Papua New Guinea, Department of Finance, Department of
National Planning and Monitoring, State Solicitor's
Office, Auditor General's Office, Independent Public
Business Corporation (IPBC), AUSAid, Asian Development Bank,
ANZ Bank, Nambawan Super, and Bank South Pacific (BSP). This
report reflects comments received from the PNG authorities
in February 2011. The mission found that, in a number of
areas, PNG meets or exceeds minimum DeMPA requirements.
Strengths include the quality of the debt management
strategy, the framework for domestic debt issuance,
coordination with monetary policy, and the legal framework
(except for the issuance of T-bills for which the law
contains no explicit borrowing purposes). Looking ahead,
the Government has expressed its intention, as part of the
2011 budget and its updated 2011 Medium-term Debt Management
Strategy, to remove the nominal cap on external debt,
replacing it with a cap of 30 percent of Gross Domestic
Product, or GDP. The commitment to allocate a portion of
excess government revenue to debt reduction will only apply
when the debt-to-GDP ratio exceeds 30 percent of GDP. At the
same time, the Government has reiterated its commitment to
reducing the exchange rate risks to its debt portfolio by
targeting 40 percent of total debt over the medium term for
the external portion of the portfolio. Interest rate risk
will be reduced through continued efforts to extend the
maturity of domestic debt. |
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