Tag Archives: banking

PM: Foreign Reserves Sufficient

By : The National

THE country’s foreign reserves are sufficient for 10 months of total import cover, Prime Minister Peter O’Neill says.

He said the government was aware of concerns that confronted the business community.

One of these, O’Neill highlighted at a business breakfast in Port Moresby last week, was the availability of the foreign exchange.

“The concerns that confronts business houses today are known to our government, we know businesshouses want to know how government addresses issues such as foreign exchange, how to maintain stability in the growth of the economic and we understand that these concerns are very genuine,” he said.

“Especially the impact of availability of forex has in your business.

“The Bank of Papua New Guinea continues to have our full confidence, and I believe that they are managing this issue responsibly.

“The bank’s intervention in the foreign exchange market has been sensible.

“Foreign reserves are currently sufficient for 10 months of total import cover. Our government hears the concerns that have been raised by businesses, and we are working to ease these pressures to ensure this issue is attended to in a timely manner.

“We are also redoubling our efforts to bring online major impact projects in our country.

“These projects will positively impact foreign exchange reserves. They will also deliver much-needed jobs for our people and reliable contracts for our businesses.

“Companies, including ExxonMobil, Total and Oil Search, continue to maintain the highest confidence in our oil and gas sector.

“Other investments are coming online, particularly in the mining sector.

“The government is fully committed to these developments and the number of others at various stages of advancement and approval processes.

“Engagement with the business community has always been a priority of our government and this will continue.

“We know that maintaining political stability is key element in maintaining business confidence.”

BSP opens branch in Cambodia

By: Cedric Patjole – 26 May 2017
Bank South Pacific will be creating history when it enters the Asian market following the announcement of its new new branch in Cambodia.
This was revealed today during the announcing of the final dividend to shareholders for 2016 today.
The decision to enter Cambodia was settled on May 2nd this year.

BSP owns 50 per cent of an asset finance company called RMA Finance, which is now in the process of being rebranded to BSP Finance Cambodia Proprietary Limited.
“It’s already operating. We now own 50 per cent and the formal rebranding, hopefully by the end of July we’ll have the BSP colours proudly in Cambodia,” said BSP CEO Robin Fleming.

The new branch in Cambodia is part of BSP strategy to enter the Asian market following its successful penetration in the Pacific which it has successfully covered following its acquisition of Westpac’s assets in the region.
BSP Board Chairman Sir Kostas said other countries in BSP’s sights include Lao’s, Myanmar, and Vietnam which they hope to enter between 18 months to two years.
“We’re starting to do feasibility on these Laos, Myanmar, I mean these things don’t happen overnight. There’s a timeframe, we make sure we have all the ticks in the boxes first. Make sure all the regulatory requirements are satisfied and we proceed. 
But there is opportunity in these countries. That’s the main thing,” said Sir Kostas.

BSP is the largest business in PNG outside of companies in the resources sector.
The banking chain has seen remarkable growth, particularly over the last three years despite a tough economic environment.
The growth and performance is attributed to the management team and staff of the company.

We Borrow To Build – O’Neill

By MALUM NALU
22th May 2017

BORROWING is needed to boost economic growth, and the country has the ability to repay all the loans it takes out, Prime Minister Peter O’Neill says.

He told heads of Government departments during their meeting at the coastal village of Keapara in Rigo, Central, on Friday that the economy continued to grow.

“Because our GDP has grown, our ability to repay those loans has also grown. That is why we are able to borrow a little bit more money to build infrastructure,” he said.

“Borrowing is not a curse. It is our ability to manage that borrowing, making sure that we invest in the right sector.

“Infrastructure is nation-building.

“It is the right sector to invest.

“It builds the economy of the nation.

“That is why we must continue to invest in it.”

Borrow

He said the Asian Development Bank, International Monetary Fund and World Bank lent money to PNG at concessional rates such as two per cent because they had “confidence in our economy”.

“Every country each year had a limit on how much they can borrow from these institutions,” O’Neill said.

“PNG’s limit is always being upgraded every year.

“That’s because they do an independent assessment of our economy, and they have confidence in our economy.”

He said the debt-to-gross domestic product level had decreased from 70 per cent in 2000 to about 35 per cent currently.