Total domestic credit increases

TOTAL domestic credit extended by financial corporations to the private sector, public non-financial corporations and ‘provincial and local level governments’ increased by K195.1 million to K17,162.0 million in the June quarter, compared to an increase of K296.2 million in the previous quarter.
According to Bank of Papua New Guinea this was influenced by increases of K280.1 million of credit extended to the private sector, which more than offset the drop of K84.9 million to public non-financial corporations.
The increase in credit to the private sector was broad-based, with notable increases to the transport and communication sector, followed by real estate, renting and business services and hotels and restaurants.
The increase in lending reflected a pick-up in activities in some of the sectors associated with the hosting of the Apec meetings.
Preliminary estimates of the fiscal operations of the government over the six months to June 2018 showed a deficit of K324.9 million, compared to the deficit of K784.4 million in the corresponding period of last year.
Total revenue, including foreign grants for the six months to June was K5.5 billion, 25 per cent higher than in the corresponding six months of 2017 and representing 43.8 per cent of the 2018 budgeted amount. The increase reflects both higher tax and non-tax receipts. Total expenditure over the six months to June was
K5.8 billion, 12.5 per cent higher than in the corresponding period of 2017 and represents 39.9 per cent of the 2018 budgeted amount.