Bank of PNG (BPNG)

In a media statement issued yesterday, Monday 24 July, Prime Minister James Marape said in the interest of national security, the National Security Advisory Committee (NSAC) convened on Friday, July 21, 2023, and recommended the following to the National Security Council (NSC) and National Executive Council  (NEC):

1. Minister for Petroleum and Energy Hon. Kerenga Kua will utilise his powers to compel both Puma and BPNG to ensure fuel supply.

In a press conference held this afternoon, Deputy Prime Minister John Rosso, said there will no longer be any fuel issues experienced over the next few weeks and months.

This morning major centres across the country were hit hard with fuel shortage with a few fuel stations temporarily closing just after midday.

This prompted for an immediate intervention; the DPM met with Bank of Papua New Guinea (BPNG) and representatives including Puma chief executive officer today to find solutions to the ongoing fuel crisis.

According to the 2022 BSP Quarter 4 Pacific Economic and Market Insights Report, foreign exchange (FX) market turnover for 2022 increased by 17.3 percent compared to the prior year.

BSP Group General Manager for Treasury Rohan George said, “FX turnover in 2022 was supported by strong commodity prices, in particular Oil, Copper, Palm Oil, and Coffee. These firmer commodity prices assisted to offset the lost FX inflows from the closure of the Porgera gold mine.”

In a statement, BPNG stated: “The health and safety of the Bank’s staff and stakeholders are paramount, therefore, necessary measures are being taken to mitigate the risks of contracting and spread of COVID-19.

“The Bank has commenced contact tracing including isolating persons of interest. The Bank is also encouraging staff to get vaccinated with the support of the Provincial Health Authority.”

The reduction of the KFR by the Central Bank will see reduction in market interest rates for the month of August.

This was possible after non-mineral private sector activities remained robust, and stability in the prices of goods and services (inflation) and the Kina value (exchange rate), among macroeconomic indicators.

This is the second reduction for the year after the Central Bank decreased the KFR from 6.2 to 6 percent following a pick-up in the non-mineral private sector, relative stability in the exchange rate, and fall in inflation.       

“We convey our deepest sympathy and sincere condolences to his wife Saraim, children Youngston, Milate, Aga Mary, Gae Jnr and Alu Michael Kauzi,” said the Governor of BPNG, Loi Bakani.

A career central banker, Late Dr Kauzi served in the Bank from May 10^th, 1993, in the areas of research and economics.

He was appointed assistant governor on October 3^rd, 2011, and became deputy governor on July 1^st, 2016 and served in this role until his passing.

The bank now becomes the fourth active licenced insurance company in the country.

The entry of BSP into the insurance industry is seen as a positive step to develop and grow the sector.

BSP CEO Robin Fleming was presented the Life Insurance License by Deputy Governor, Gae Kauzi, in Port Moresby, formally recognising BSP Life Limited (BSPL).

Kauzi congratulated BSPL saying the licences are not easy to come by.

He also challenged BSPL to instil strong governance and best practices, which have been lacking in the past in some insurance companies.