On the fiscal side, when times get tougher governments also have to revise their plans, reassessing the level of tax revenue they can count on, no longer putting substantially more new money into the economy each year. The flow of new programmes tails off; existing provisions are wound back and the private sector has to adjust to that change too.
Credit guarantee and facility schemes Credit guarantee schemes seemed to have limited success in Papua New Guinea’s situation, perhaps partly because such schemes are not fully appreciated and understood. The problem also extends to include the government or its institutions that provide guarantees to small and medium enterprises where in most cases such guarantees are not honoured, giving rise to other issues (e.g.