IMF

This significant event was highlighted by Prime Minister James Marape during a press conference held by the Prime Minister alongside the IMF's Deputy Managing Director, Bo Li, last Thursday evening.

The reopening of the IMF Resident Office is a testament to the enduring partnership between Papua New Guinea and the International Monetary Fund, aimed at fostering economic stability and growth for the nation.

These new options will provide countries with funding issued in the IMF’s currency, the Special Drawing Rights, or SDR’s.

The IMF has also announced it is considering providing additional funds to its concessional lending facility, and potentially setting up another facility to support countries during these challenging economic times.

The IMF report noted that Medium-term growth is expected to converge to about 3 percent, supported by agriculture and preparations for the hosting of APEC 2018.

The Report stated that the Government plans to spend K3 billion over 2015-18 on the preparations for APEC 2018 (e.g., upgrading the airport).

Thus, 2018 will see a winding down of construction activity, with overall growth projected to slow down to 1½ percent in 2018 and stabilise at 3 percent over the longer term.

Although the IMF raised its prediction for UK GDP growth this year to 1.8%, the figure for 2017 was cut to 1.1%.

Its assumptions are based on "smooth post-Brexit negotiations and a limited increase in economic barriers".

The IMF's latest World Economic Outlook predicts "subpar" global growth this year of 3.1%, rising slightly in 2017.

The defendants allegedly used "unofficial" company credit cards for luxury purchases, unconnected with their duties as board members.

Prosecutors say about €12m (£10.4m; $13.5m) was spent on hotels, fine clothes, entertainment and travel.

Mr Rato denies wrongdoing. Bankia was rescued in 2012 at huge public expense.

The unofficial credit card purchases were not declared to the tax authorities. The system allegedly started at Caja Madrid bank and was continued by Mr Rato when Bankia was created in 2011.

He said with a number of major oil, gas and mining projects continuing to progress towards the final approval and construction stages, the country is in a stable economic position.

O’Neill made these remarks after the International Monetary Fund (IMF) warns on slower global economic growth this year and in 2017.

“The Bank of Papua New Guinea has pointed to private sector growing in the first quarter of 2016, compared with a decline in the December quarter of 2015.

In a statement, Sir Mekere said he was surprised the IFC would even consider such a loan.

“The Prime Minister cannot borrow his way out of the problems he has created.

“The budgetary and financial problems the country is facing will not be cured by band-aids such as this. In fact it will only make matters worse.”

He said O’Neill’s justification for the loan is a lack of foreign exchange, which is crippling business and commerce and leading to increased hardship for ordinary Papua New Guineans such as job losses, rising prices and a collapse in service delivery.

The move has created a problematic backlog of requests from businesses to access foreign currency for imports.

Prime Minister Peter O'Neill said the loan would be used to clear the foreign exchange requests of major fuel and rice companies.

"The Central Bank is talking to the IMF to create a temporary facility of $US250 million, which they will bring in to make sure they pass it on to the commercial bank," O'Neill said.

"Then [the Central Bank will] make sure they clear up the foreign currency backlog that we have," he added.

A recent IMF report published in the media commended the government for achieving impressive economic growth in recent years.

The IMF projected economic growth for PNG to be robust in 2016, but warns of challenges posed by the sharp drop in commodity prices.

The global financial institution supported the move for PNG to debut the sovereign bond market, urging the government to use the funds raised to improve PNG’s debt profile and fund existing projects and commitments.

In a report Tuesday in advance of the IMF-World Bank annual meetings here this week, the fund says the world economy will grow 3.1 percent this year, down from a July forecast of 3.3 percent and from 3.4 percent growth last year.

"The risks seem more tilted to the downside than they did just a few months ago," IMF chief economist Maurice Obstfeld, told reporters.

Still, Obstfeld downplayed the risk of a global recession.