Risk premium on lending in Papua New Guinea
Papua New Guinea: Risk premium on lending was 4.1% in 2024. ◆ Volatile
Risk premium on lending in Papua New Guinea, 1994–2024
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in lending rate minus treasury bill rate, %.
Analysis
Papua New Guinea recorded 4.1% for risk premium on lending in 2024.
That represents a change of down 32.5% on the previous year and down 24.9% over ten years.
Over the whole period, risk premium on lending in Papua New Guinea peaked at 8.1% in 2012 and was at its lowest, -5.3%, in 2003.
Papua New Guinea ranks 47th of 86 countries on this measure, in the middle of the range.
The series is highly variable year to year, so single readings are best treated with caution.
Risk premium on lending in Papua New Guinea, year by year
| Year | lending rate minus treasury bill rate, % | Change |
|---|---|---|
| 1994 | 1.3% | — |
| 1995 | -4.3% | -417.8% |
| 1996 | -1.1% | -73.4% |
| 1997 | 0.5% | -145.1% |
| 1998 | -3.5% | -779.8% |
| 1999 | -3.8% | +9.4% |
| 2000 | 0.5% | -114.4% |
| 2001 | 3.9% | +604.7% |
| 2002 | 3.0% | -23.1% |
| 2003 | -5.3% | -280.0% |
| 2004 | 4.4% | -182.5% |
| 2005 | 7.7% | +74.2% |
| 2006 | 7.1% | -7.8% |
| 2007 | 5.1% | -27.6% |
| 2008 | 3.0% | -41.3% |
| 2009 | 2.8% | -7.0% |
| 2010 | 5.8% | +108.0% |
| 2011 | 6.7% | +14.9% |
| 2012 | 8.1% | +21.1% |
| 2013 | 8.0% | -1.2% |
| 2014 | 5.4% | -32.2% |
| 2015 | 3.5% | -35.9% |
| 2016 | 3.8% | +10.3% |
| 2017 | 3.7% | -4.3% |
| 2018 | 4.4% | +19.0% |
| 2019 | 2.5% | -42.0% |
| 2020 | 0.8% | -69.6% |
| 2021 | 3.7% | +375.8% |
| 2022 | 5.2% | +43.2% |
| 2023 | 6.0% | +15.0% |
| 2024 | 4.1% | -32.5% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 1990s | -1.8% | -4.3% | 1.3% | 6 |
| 2000s | 3.2% | -5.3% | 7.7% | 10 |
| 2010s | 5.2% | 2.5% | 8.1% | 10 |
| 2020s | 3.9% | 0.8% | 6.0% | 5 |
Countries ranked near Papua New Guinea
More financial sector data for Papua New Guinea
- Reserve position in the IMF, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve position in the IMF, US dollar, per unit of GDP 0 units per US$ of GDP (2025)
- Reserve position in the IMF, US dollar, per capita 0.0743 units per person (2025)
- Reserve position in the IMF, SDR, annual growth rate 0 % change on previous year (2025)
- Reserve position in the IMF, SDR, per unit of GDP 0 units per US$ of GDP (2025)
- Reserve position in the IMF, SDR, per capita 0.0543 units per person (2025)
- Reserve tranche position, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve tranche position, US dollar, per unit of GDP 0 units per US$ of GDP (2025)
- Reserve tranche position, US dollar, per capita 0.0743 units per person (2025)
- Reserve tranche position, SDR, annual growth rate 0 % change on previous year (2025)
Frequently asked questions
- What is risk premium on lending in Papua New Guinea?
- Risk premium on lending in Papua New Guinea was 4.1% in 2024, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest risk premium on lending recorded in Papua New Guinea?
- The highest recorded value was 8.1% in 2012.
- What is the lowest risk premium on lending recorded in Papua New Guinea?
- The lowest recorded value was -5.3% in 2003.
- How does Papua New Guinea rank for risk premium on lending?
- Papua New Guinea ranks 47th out of 86 countries with data for 2024.
- Is risk premium on lending rising or falling in Papua New Guinea?
- Over the last ten years it is down 24.9%. The long-run trend across the full record is volatile.
- Where does this Papua New Guinea data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Risk premium on lending (lending rate minus treasury bill rate, %). Statizoid updates them automatically from the source API.
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About this data
Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.