THE Bank of Papua New Guinea (BPNG) has distanced itself from the regulatory actions taken against the Bank South Pacific (BSP) Financial Group Ltd.
BPNG maintains that the action was done independently based on the Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Act (2015).
Governor Loi Bakani said the Central Bank had not endorsed or approved the statement released by the Financial Analysis and Supervision Unit (Fasu) on Monday and the logo was not authorised.
“The Bank of PNG disassociates itself from the statement made by Fasu,” he said.
“The use of the bank logo was not authorised and the statement was not endorsed or approved by BPNG.
Kina Bank has established a special multi-million Kina pool of funds in a leading market move to support Small Businesses in Papua New Guinea .
The announcement was made today by Kina Bank Chief Executive Officer Greg Pawson.
THE Bank South Pacific Financial Group Ltd (BSP) has always complied with its anti-money laundering and counter-terrorist financing (CTF) obligations, says chairman Sir Kostas Constantinou.
He mentioned this in a market release yesterday in response to a letter BSP received from the Bank of PNG’s Financial Analysis and Supervision Unit (Fasu) concerning anti-money laundering (AML) allegations made against the BSP.
Fasu took regulatory action against BSP for allegedly not complying with certain matters.
Fasu had conducted on-site inspections of the BSP on Oct 23, 2019 and last June.
TREASURY Secretary Dairi Vele has told the Commission of Inquiry into the Union Bank of Switzerland K3 Billion loan that the Central Bank had recommended the overseas bank to re-finance an exchangeable bond.
According to an affidavit by Vele, Governor of BPNG Loi Bakani had written to UBS regarding the re-financing of the International Petroleum Investment Company (IPIC) loan and advised that the State accepted its proposal to re-finance the IPIC exchangeable bond by a rollover collar and term loan.
Vele said Bakani requested the UBS to confirm in writing its commitment to fund the AU$1.7 billion IPIC exchangeable bond.
Papua New Guinea's YANGORU-Saussia MP Richard Maru wants Prime Minister James Marape to commit to the tabling of a legislation to bring back reserve businesses.
“The Government should pass the legislation in the Parliament sitting in August to bring back the compressive set of reserve businesses that are reserved for Papua New Guineans only,” he said.
“Our people have been calling on the Government to do this and I do not know why the Government had been unable to bring that critical legislation to Parliament.
“The legation had been ready for more than three years.
“Why are the ministers holding back this legislation? They should be ashamed of themselves.
The Port Moresby South electorate has gone into a partnership with the Autonomous Region of Bougainville to import betel-nuts from the region and resell in bulk at the new Kaugere Market in Port Moresby South electorate.
The Asian Development Bank (ADB) and Amalgamated Telecom Holdings Ltd (ATH) yesterday executed the subscription and shareholders agreement (investment agreement) for ATH International Venture Pte. Ltd, the subsidiary company investing in ATH’s new mobile broadband telecommunications network construction project in Papua New Guinea.In its market announcement issued by the South Pacific stock exchange yesterday, ATH stated that its largest subsidiary Vodafone Fiji Pte Ltd was managing the project rollout.It stated that the project had already made significant progress and “subsequently operate the mobile business under the Vodafone brand”.The company stated that the signing of the agreement was a key milestone for the project in formalising the ADB’s participation as the cornerstone investor in this project, and to pave the way for other equity partners to join ATH and ADB as shareholders in the project to bolster the provision of modern, innovative and affordable services to the people of PNG.“
THE Government is looking for money to meet its obligations and is expecting big companies to pay their taxes as good corporate citizens, says Finance Minister Sir John Pundari.“The demand for money in this nation is so much that I find it very difficult to meeting the demands,” he said.“Demands for (overdue government) arrears, outstanding payments some of which are from many years ago.”“The demand for money for health, education, for litigated cases against PNG. We all want money (but) here is money going to come from?” Sir John warned those companies which have been declaring losses every year to leave the country.“We’ve got corporate giants who continue to declare a loss in their (annual) financial reports to the Internal Revenue Commission (IRC),” he said. “If you continue to declare a loss, why do you (remain) in this country? You might as well pack up and leave.” He said a recording losses reflected an “unattractive investment”. “If you continue to declare a loss, your investment is unattractive and does not return a good yield,” Sir John said. “It is indeed a shame for big corporate companies that continue to declare losses year in year out, and yet continue to remain in this country.
Managing Director of Papua New Guinea Investment Promotion Authority, Clearance Hoot says they are reviewing the Small to Medium Enterprise policy – a policy that was never implemented.
He says it is a disappointment as it is posing a lot of challenges.
The IPA and the SME Development Corporation under the Department of Commerce and Industry are reviewing this policy.
Another first for the PNG banking industry that changes expectations for local competitors
Kina Bank setting international standards: Competition boost
Kina Bank is resetting its Indicator Rate for lending to business in a move that reflects international standards and will drive competition in banking in Papua New Guinea (PNG).
In a bold move the bank will reduce its Indicator Lending Rate (ILR), effective 1 June 2021, to 6.25%.
The ILR in PNG is the predominant reference rate offered by banks on loans to businesses.
It’s set by banks at around 11% and is the starting point for banks to price loans to borrowers. From the starting point a customer’s rate is determined, depending on factors such as security held, credit history or the financial covenants of a loan.
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