The International Monetary Fund has approved a new two-year loan arrangement for Papua New Guinea for about $US259 million ($A407 million) to help the Pacific island nation improve climate resilience.

The IMF Executive Board announced on Thursday that it had also completed third reviews under existing loan arrangements, providing PNG with immediate access to about $US125 million, the IMF said.

In July, the IMF board's second review noted PNG "authorities' strong commitment to reforms."

"The program will continue to support Papua New Guinea's reform agenda, help protect the vulnerable and foster inclusive growth, with a focus maintained on strengthening debt sustainability, alleviating FX shortages, and enhancing governance and anti-corruption frameworks," it wrote.

Australian Associated Press