Papua New Guinea's warns that its government revenues for 2015 came in 21% below expectations due to an oil price slump, the worst drought since 1997 and ballooning budget deficit, resulting in the country seeking a IFC loan of $ 23 per cent m to tackle its financial crisis. The budget deficit increased to K2,142.5 million in the 10 months to October 2015, compared with K1,834.2 million in the same period the year before, according to Papua New Guinea's central bank. However, analysts warn that securing an World Bank loan will not solve Papua New Guinea financial problems.
Papua New Guinea's warns that its government revenues for 2015 came in 21% below expectations due to an oil price slump, the worst drought since 1997 and ballooning budget deficit, resulting in the country seeking a IFC loan of $ 23 per cent m to tackle its financial crisis. However, analysts warn that securing an World Bank loan will not solve Papua New Guinea financial problems.