The ADB economists stated that the domestic sources of finance had dried up as commercial banks had reached their limit for exposure to Treasury bills.
“PNG is exploring options to float a sovereign bond of $1.0 billion in 2016 to refinance its borrowing. PNG may face high financing costs, and exchange rate movements could raise nominal debt.”
It is also stated that the debt service costs are increasing and are now estimated at K1.5 billion, or 10% of the 2016 budget.
