Bank of Papua New Guinea raises Kina facility rate, Prime Minister Marape welcomes Telstra and Phase II of Central Banks Act gets green light. The business news you need today.
The PNG bank increased the Kina Facility Rate from 0.25% to 3.25% to “counter rising inflation”. This is the first change since April 2020, when rates fell from 5.00%.
“Domestic prices have continued to rise since the June quarter of 2021 and the Bank expects them to remain elevated for the rest of the year. This is reflected in a significant increase in the overall consumer price index (inflation) of 6.9% in the March quarter of 2022,” Acting Governor Benny Popoitai said. He cited “high imported inflation caused by rising international crude oil and food prices, due to continued supply constraints attributed to the impact of the COVID-19 pandemic and the Russian-Russian war. Ukrainian”. (PNG bank)
Submissions for Phase II Review in PNG Central Bank Act 2000 and regulation of the financial sector are expected for this Friday, July 22. The independent advisory group conducting the review says stage two will focus on regulatory and oversight arrangements to help improve competition and access as well as a commitment to transparency, among other things.
Robert Igara, Chairman of the Independent Advisory Group, said: “We must encourage competition, investment, accessibility and growth in our financial sector and use modern technology to increase productivity and efficiency, review our laws governing our banks and institutions as well as the insurance and pension sectors, and ask yourself if they are robust enough to support their reforms.Post mail)
The Bank of China (BOC) established an office in Port Moresby. The office is not yet operational, but when it is, it will mainly act “as a liaison office”.
‘As a representative office, we are not permitted to conduct any banking business unlike your typical banks operating in PNG. We are not able to perform banking transactions such as making loans or make deposits,” said Wee Li Cheong, Head of Financial Institutions and Asset Management of BOC (New Zealand ). (The National)
Prime Minister Marape hosted by Telstra the acquisition of PNG and said the move represented an opportunity for PNG.
“The acquisition will allow our connection to the outside world much faster and deeper. I want Telstra to maintain connections across our country, especially in the unconnected pockets of our out-of-reach communities, and grow those connections” “The completion of this acquisition also presents an opportunity for PNG stakeholders to work on potential participation in the telecommunications sector,” he said.The National)
The National Fisheries Authority started a new fishing project in the village of Mouk, province of Manus. Project highlights include a multi-tonne fishing vessel, the FV Lauyang, and solar-powered freezers. (Post mail)
The National Airports Corporation (NAC) gave an update on the new terminal at Kavieng Airport. NAC Managing Director Rex Kiponge said that “construction work on the new terminal is progressing well and is expected to be completed by the end of September 2022”. However, the NAC held meetings with the New Ireland Provincial Government and stakeholders as landowners threatened to delay operation of the Fokker 100. The track was completed in January this year. (Post mail)
The National reported that NAC will make a decision Friday on resuming flights to Wapenamada airport. The airport in Enga province is still closed after an act of vandalism on July 7. (The National)
coffee business Sucafina and the Market Development Facility (MDF) teamed up to develop a data model and calculator to quantify the carbon footprint of its supply chain (from smallholder to export). The goal is to reduce carbon emissions in Sucafina’s coffee value chain. If successful, the data will be made available to local exporters working with the company. (The National)