MEDIA RELEASE No: 1999-14 Date: 16 December 1999 Embargo: For Immediate Release

FOREIGN EXCHANGE SWAP WITH BANK OF PAPUA NEW GUINEA

Following a request from the Australian Government, the Board of the Reserve Bank of Australia has agreed to provide short-term bridging finance to the Bank of Papua New Guinea, pending negotiations between the Papua New Guinea Government and the International Monetary Fund regarding a Stand-by Arrangement.

As noted in today's press release by the Acting Treasurer, the facility will be for an amount equivalent to US$80 million. The Reserve Bank will make the funds available in the form of a foreign exchange swap involving Australian dollars against PNG kina.

Enquiries:
Mr R Battellino Assistant Governor (Financial Markets) SYDNEY (02) 9551 8200	Manager, Information Office Reserve Bank of Australia SYDNEY (02) 9551 9720