MOFCOM reschedules $12 million of the Government of Papua New Guinea’s outstanding obligations through 10-year maturity extensions (Linked to Record ID#37689)

Project narrative

In September 2008, the Chinese Government and the Government of Papua New Guinea signed a debt rescheduling agreement, in which the Chinese Government agreed to extend the Government of Papua New Guinea’s loan repayment periods by 10 years on $12 million of outstanding debt obligations. These obligations reportedly resulted from three interest-free loans that the Government of Papua New Guinea (PNG) had previously contracted for the construction of the Sir John Guise Stadium (captured via Record ID#37689) and the Markham High School (Wawin National High School). Two of the loans had final maturity dates in 2010 and the third loan reached maturity prior to September 2008. According to the PNG Trade and Industry Minister Gabriel Kapris, the Government of Papua New Guinea had made no attempts to repay any of these loans as of September 2008 and discussions were underway with the Chinese Government to convert the loans into a grant. PNG owes China PGK29.8 million for the construction of the Sir John Guise Stadium and the Markham High school.