Bank of Papua New Guinea (BPNG)

The request, made under its Extended Credit Facility and Extended Fund Facility, will run from March 2023 to March 2026.

The program is for budget support to assist the Government to pursue fiscal consolidation in the medium term and undertake critical reforms to help improve the performance of the economy.

This funding is tied to conditions and reforms that PNG is required to meet, defined as structural benchmarks and quantitative targets under the program to trigger drawdowns over the period.

According to the Bank of Papua New Guinea Monetary Policy for March 2023, the deficit will be financed from domestic sources totaling K1,465.7 million and external financing of K3,519.2 million.

Of the net domestic financing, K525.7 million will be from new Treasury bill and K945.0 million from Treasury bond issuances, more than offsetting loan repayments of K5.0 million.

“Access to financial products and services must not only be broad, but also meaningful in a sense that it opens up opportunities for the Papua New Guineans to move up in life,” said BPNG’s Acting Assistant Governor, FSSG, George Awap, at the launching of the third National Financial Inclusion Strategy (NFIS3) 2023-2027.

Awap said that while deposit account ownership grew over the last 10 years from the launch of the first NFIS in 2014, to a level of 3.7 million, an estimated 5 million remain unreached by the formal financial system.

Implementing the strategy is the Centre for Excellence in Financial Inclusion (CEFI) in collaboration with the Central Bank (BPNG) and the Department of Treasury.

CEFI is the mandated organization implementing the National Financial Inclusion Policy 2019 since the first NFIS 2013-2015. Thereafter, its success followed with the second NFIS 2016- 2020.

He was honoured to launch the 3rd National Financial Inclusion Strategy 2023-2027 at this great event, stating the importance of Financial Inclusion in the country.

“We (the government) believe that financial inclusion is key to integrating the unbanked into the formal economy, which helps to alleviate poverty, make the poor less vulnerable to financial shocks, reduces economic inequality and raises living standards for all,” said the Chief Secretary.

Assistant Governor - Financial System Stability Group, BPNG, George Awap, shared these sentiments at the launching of the Third National Financial Inclusion Strategy (NFIS).

“The Central Bank embedded various initiatives in PNG to fight financial exclusion can be traced back to the development of National Financial Inclusion and Financial Literacy Strategy 2014-2015 followed by the Second National Financial Inclusion Strategy 2016-2020,” said Awap.

The NPC is comprised of senior executives from Bank of Papua New Guinea, financial institutions and the Government, chaired by BPNG Acting Governor, Elizabeth Genia.

BPNG in a statement said despite the improvement in clearance times to currently two days, following the launch of the Kina Automated Transfer System in 2013, cheques are still considered a higher risk for fraudulent use and cause longer processing times and inconvenience when dishonoured.

“First is to assess the specific issues of whether PUMA has breached our country’s banking and taxation requirements. 

Ling-Stuckey said, “We are checking the facts in our discussions with PUMA and Government agencies.”

The treasurer also highlighted the need to address failings in the fuel market, including the appropriateness of some long-term contracts going back to the InterOil days adding that the Prime Minister has announced actions underway on this. 

Marape said today that Cabinet has appointed Mrs Genia, the “most senior” officer at the Central Bank, to the post after Mr Benny Popoitai’s stint had come to an end, with no law allowing for an extension over six months of acting appointment.

“This is the first time a female has been given this role as the head of the Central Bank,” said Marape.

“Mrs Genia has been with the Bank for more than 35 years, serving at the senior level, and very recently, as the Assistant Governor. It is a timely appointment based on merit and has nothing to do with Mr Popoitai's competence.

Prime Minister James Marape said this resulted in Puma stopping its supply of aviation gasoline to Air Niugini, because it could not get the required FX to bring in fuel, resulting in all flights being cancelled last Thursday.

Marape said this on Sunday (January 8, 2022) after meeting with top executives of Puma Energy in Singapore.

He was accompanied by Petroleum and Energy Minister, Kerenga Kua and State-Solicitor Daniel Ropalgarea.