Bank of PNG

Bank Dispels Fake K100 Note Rumour

According to Acting Central Bank Governor Benny Popoitai, the notes in question were, in fact, old notes that were still in circulation.

The validity of the notes in question has also been confirmed via public notice by Bank of PNG, the regulator and wholesale supplier of currency to banks.

In a statement, Kina Bank said they will also be assisting BPNG to circulate these notices to the public through its branch and ATM network.

Treasurer visits BPNG

Ling-Stuckey was at BPNG on Monday to witness the swearing in of the new Bank of PNG board members.

The new members are acting Governor, Benny Popoitai, David Toua, Ulato Avei, James Gore, Des Yaninen and Richard Kuna.

In its first business of the day, the new board elected David Toua as its interim chairman. 

During the event, the Minister said the current review was timely, given that good governance in most countries suggest that laws should generally be reviewed after ten years, not twenty two years, as was the current case.

BPNG Appoints Interim Council

David Toua, who was virtually present, was appointed Interim chairman.

Toua is General Manager-Corporate Affairs for the Steamships Trading Company and a current board member of BPNG.  

Board members who were present for the ceremony were Richard Kuna, James Gore, Des Yaninen and the only female member Ulato Avei.

Treasurer Ian Ling-Stuckey was also present at the meeting, but did not comment on the appointments.

“Amendment To Central Bank Act A Big Mistake”

He said the amendments put at risk on the financial future and international reputation of Papua New Guinea.

Amendments to the Central Bank Act was unanimously passed by Parliament in December 2021.

Treasurer Ian Ling-Stuckey said it is the start to modernizing the Bank of PNG.

In a press release, Ambassador Lupari described the amendments made to the Central Bank Act as a big mistake and dangerous for the country.

Strict banking process, less accounts

East Sepik Governor, Allan Bird, recently outlined in a Parliament sitting that ordinary citizens are “harshly dealt with by the banking system” when it comes to depositing large sums of money. He drew attention to the cash-based informal sector, where 80 percent of Papua New Guineans operate in.

Bakani agreed with Bird’s sentiments, saying: “If the commercial banks know the profile of the company, and if they’re producing documents to justify the deposits they’re making, they shouldn’t be asking more questions.”

New 50t Coin Released

The fifty toea coin has been used over the years as a commemorative coin to mark special and significant events in the country. This new 50 toea coin will remain as a standard circulating coin in the event that the commemorative coins currently in circulation are depleted.

The 50 toea coin retains the dimensions and most design elements of the existing 50 toea coin except for the reverse side, which depicts the Birdwing Butterfly (Ornithoptera Paradisea). This new design was originally used on the one toea coin that was demonetized in 2012.

Central Bank Governor pays tribute to Sir Michael

Central Bank Governor Loi Bakani in his condolence message to the founding father of the nation said PNG owes him much for what it is today – a vibrant, progressive democratic nation of diverse cultures, traditions and tribes.

“Sir Michael joins an elite group of leaders who led their countries into independence and nationhood – forging a national identity, building national institutions and developing alliances across local and international borders.

Sir Michael’s achievements are unique and will be unmatched by anyone in PNG.

CTSL announces 6.5% crediting rate

This follows an impressive cash flow reversal for the fund after the CTSL Boards removal mid 2019.

The announcement was made by Statutory Manager, Sitiveni Weleilakeba, CEO Charlie Gilichibi, and PNGDF Commander, Major General Gilbert Toropo.

The announcement comes off the back of a turbulent year in which the entire CTSL Board except PNGDF Chief of Staff, Capt. Philip Poleware, were suspended by the Bank of PNG in July 2019.

The Central Bank was of the view that the then Board did not perform in accordance with the Central Bank regulations and expectations.

BSP Reduces Indicator Lending Rate

BSP’s lending products that are linked to its ILR will reduce by 1% from 1 April, 2020, and other products such as its variable rate, Home Loan will reduce by 1% to 5.5%.

In a statement on March 31st, BSP CEO Robin Fleming said: “Our fixed rate loan products are treated slightly different to the variable rate. Our First Home Owner Housing Loan will remain at 4.00% pa fixed. New Personal Loans and New Smart Business Loans/SME Loans will have a 1% reduction in interest rate which in the case of Personal Loans will be 26%.”

BPNG directs FX priority for COVID-19

The Bank of PNG will also make foreign currency available directly to the National Department of Health of urgent COVID-19 relocated purchases abroad.

This is among several monetary policy measure responses by the Central Bank to the impact of COVID-19.

Another key measure is the reduction of the Kina Facility Rate (KFR) from 5 percent to 3 percent which will push interest rates down.

Commercial Banks have been directed by the Central Bank to reduce their respective Indicator Lending rates (ILR).