However, while CRE and SME lending represented the majority of banking NPLs at the height of the crisis, residential mortgages now account for close to two thirds of the remaining NPL balances.
This projected outcome is mainly associated with the inflows for the PNG LNG project and other private sector foreign direct investments. The current account is projected to record a deficit in 2012, attributed mainly to increased imports and higher net services and income payments related to the PNG LNG project (see Chart 2).