Bank of PNG

Police & State loan society expected to reopen

The Society was placed ‘in administration’ following a review conducted by the Bank of PNG.

In the review, the Bank concluded that the financial condition of the Society was very poor, which threatened the overall solvency of the society. Considering the severity of the findings, the Society was placed under administration.  

Economic activity slow

In its Quarterly Economic Bulletin for June, the Bank of PNG states that this is due to unemployment, falling commodity prices and reduced imports.

The report states that while global economic growth maintained its momentum in the second quarter, international prices of most of PNG's export commodities declined, compared to the previous quarter. Also while production of most commodities increased, this was not sufficient to offset the decline in prices and resulted in low export receipts.

3.1pc employment drop in private sector

This is according to the Bank of PNG’s Quarterly Economic Bulletin for June 2017.

The Central Bank said the private sector declined by 1.1 percent in the June quarter of 2017, despite an increase of 1.1 percent in the March quarter.

Excluding the mineral sector, the level of employment fell by 1.4 percent.

According to the Bank of PNG, employment decreased in the construction, agriculture, forestry, fishing, retail and manufacturing sectors.

BPNG intervention improves BSP backlog

Bank South Pacific says since the introduction of more than K300 million into the market by the Central Bank, they have reduced around K150 million in backlog orders.

Group CEO chairman, Robin Fleming, said while the backlog hasn’t changed much, the total outstanding has improved.

“During October it actually reduced by the best part of a K150 million when the bank of PNG put the full US$$100 million that was indicated in the 100 day plan.

BPNG backs AFL

The event took place at the Coles Oval and was witnessed by staff of BPNG, AFL PNG and Port Moresby AFL.

In handing over the key, Governor of the Bank of Papua New Guinea, Loi Bakani, said BPNG was continuing to working closely with AFL PNG and sponsors to ensure this year’s competition runs smoothly, especially in the senior division.

“The Hilux belonged to BPNG but is still in good running condition. It was fully serviced before being given to Port Moresby AFL,” said Bakani.

Foreign reserves increased

This is an improvement of K368.6 million at the end of 2016, according to the Mid Year Economic and Fiscal Outlook Report (MYEFO).

The report states that the increase in the level of reserves mainly reflects improved inflows from non-mineral export receipts, expected proceeds from external financing, receipts for royalty and development levy associated with the PNG LNG Project and concessional loan drawdowns from bilateral and multilateral sources.

​Polye challenges Bakani to facilitate debate

In a media conference on Monday in Port Moresby, Polye said the statement from Bakani stopping politicians to talk about the country’s economy during this election is very shocking.

He said the statement is very irresponsible from someone who is supposed to be guiding the people and the Government of PNG.

“It’s the people’s right to freedom of expression and freedom of speech to discuss such issues.

“He should encourage families and government to talk about the budget and how well our economy is going.”

Police investigating counterfeit money post

They were alerted after the post went viral early this week, claiming that police in Vanimo intercepted a shipment of counterfeit K100 notes at the Indonesian border.

However, Sandaun provincial police commander, Superintendent Robert Gesa, told Loop PNG that they have not intercepted nor come across any money yet.

“We do not have any money in our possession, we don’t have a police report on it on our station OB (occurrence book) or even on our crime register,” said the PPC.

Declining PNG revenue a budgetary challenge

This is one of the current challenges facing the country, according to a presentation by Bank of PNG Governor, Loi Bakani.

Presented at the National Development Forum last week, other challenges include:

PNG removed from Financial Action Task Force greylist

FATF is a multidisciplinary body made up of 37 member countries globally, and operates as a peer review mechanism holding Governments to account for their commitment to fighting international crime and improving financial stability.

PNG is part of the Asia Pacific Group on Money Laundering that is an associated member of FATF.

In February 2014, PNG was placed on the international monitoring list of the FATF and assessed on the FATF standards. PNG was found  as not being compliant and was greylisted by FATF.