After the loan agreement was signed in Port Moresby, Treasurer Ian Ling-Stuckey said national revenue dropped by 20% last year because of the pandemic, Radio New Zealand Pacific reported.
He said the government had reached out for international support to sustain the devastated economy.
The National newspaper reports the loan is in line with the government policy to replace expensive commercial loans with cheaper transitional financing.
The funds will reportedly support regional health centres so they can address Covid-19.
JICA will disburse about $281.5 million to aid the national budget with an interest rate of 0.1% per annum and four-year grace period.
Meanwhile, the number of Covid-19 cases in Papua New Guinea continues to rise.
The National Pandemic Response Controller reported 87 new cases in the past days, taking PNG's total to 1670.
It means that in the past five weeks, PNG has reported about 800 new cases.
