If this is not forthcoming, countries must draw on foreign savings - through foreign direct investment or borrowing. Pacific Island Countries and Territories (PICTs) generally aim to keep reserves that cover at a minimum 3-4 months of imports. Declining reserves can also affect the availability of credit and interest rate levels in countries as declines in foreign reserves deplete banking sector liquidity (PFTAC 2010, 5-6). Presented by Kepsey Puiye, Assistant Director, Petroleum Economics - Department of Petroleum and Energy PNG.