Treasurer Don Polye says the challenge for Papua New Guinea now is to encourage the growth of financial institutions to help maintain the countries debts at manageable levels.
In a media conference this afternoon Mr Polye outlined three key areas, this includes the annual domestic debt issuance plan, managing inflation levels and the new judiciary act passed on Friday.
Treasurer Don Polye said his aim was to keep debt levels at 35 percent but it has increased by point two percent because of the need to create a stimulus package by putting more foreign currency into the economy.
But he says this is being done through ensuring debts are kept at a manageable level.
He said if things go according to plan the country should achieve balanced budgets in 2017 to 2018. Where it’s forecasted that debt levels be brought below 24 percent.
Currently the government made a savings of 150 million which is currently parked in trust accounts, with cabinet yet to decide what to do with the savings.
Another one of his major strategies to reduce the excessive financial risks, that plaqued most of the western world during the global crises is to maintain foreign currency debt at around 40%. This will be done by restricting the amount of new foreign currency loans the government enters into.
Meanwhile the treasurer also confirmed a term of reference is currently being put together for the taxation review.