Accessing finance to develop land in Papua New Guinea is the biggest stumbling block to creating wealth, jobs and an economic base for future generations. In New Zealand, Maori economic development is forging ahead, with the active support of banks and investors. In the second of a two-part series, Kevin McQuillan examines NZ banks’ lending criteria.
Commerce and Industry Minister, Wera Mori, says the government is focusing on new laws to open up Papua New Guinea’s capital markets to attract foreign investment. He also told business in Port Moresby this week that the government alone cannot rebuild the country’s economy and has called for a new bond between the state and the business community.
The ratings agency Moody’s has affirmed Papua New Guinea’s B2 rating, but downgraded it from ‘negative from stable’, citing higher government liquidity risks, increased gross borrowing requirements and limited funding sources. It points to a growing reliance on short-term debt.
Oil prices are up and copper is also strong, but LNG has weakened. Business Advantage PNG’s monthly review of Papua New Guinea commodity and financial markets.
A well-managed economy and a 20-year vision are two reasons Credit Corp has set up shop in Timor-Leste. Country Manager, Chris Durman, outlines his own vision to Business Advantage PNG.
Super fund Nambawan Super is one of the largest sources of investment capital in Papua New Guinea. Paul Sayer was appointed CEO last August; he talks Business Advantage PNG about the fund’s approach to investments.
The establishment of a Sovereign Wealth Fund (SWF) in Papua New Guinea is likely to take more than a year, according to Zanie Theron, Managing Partner of professional services firm KPMG, which is advising the government. She tells Business Advantage PNG that, although there are challenges, positive signs can be observed in the business environment.
Greg Pawson, the newly appointed Chief Executive of Kina Securities, has said that the world economy is showing signs of recovery, which will have a positive effect on the economy. But he believes that Papua New Guinea still faces big structural challenges.
Oil prices continue their rise but LNG prices have eased. Cocoa and palm oil prices are slightly stronger. Business Advantage PNG’s monthly overview of commodity and financial markets.
Foreign exchange issues will continue in the short term according to Robin Fleming, Chief Executive of Bank South Pacific [BSP]. But he tells Business Advantage PNG that there are better longer-term prospects and that Papua New Guinea’s biggest bank is thriving in a challenging economic environment.