The governmental Japan Bank for International Cooperation on Wednesday signed an agreement with Papua New Guinea to extend a 5.35 billion yen official development assistance loan.
The latest loan will bring Japan's cumulative lending to Papua New Guinea to 62.19 billion yen, the JBIC said.
The bank said the loan is designed to support the country's efforts to attain macroeconomic stability by financing general imports, and improve its balance of payments position under the structural adjustment program.
This program is aimed at improving Papua New Guinea's fiscal control, official debt management, business environment, efficiency in the public sector and financial services, the JBIC said.