The Papua New Guinea Treasurer Patrick Pruaitch has presented a record K16 billion national budget for 2015, but with an increased deficit of K2.272 billion.
Banking & Finance
Sharing nearly 500,000 clients, Papua New Guinea’s micro finance industry is expanding its reach, its numbers and its services. Business Advantage PNG looks at what the industry is offering.
The Papua New Guinea economy is on the edge of a ‘slippery slope’, if the Bank of PNG finances government debt and continues to fix the exchange rate at too high a rate. Former Australian Treasury advisor Paul Flanagan says compounding the problems are rising inflation, falling foreign exchange reserves, and declining private sector credit growth.
The Papua New Guinea economy is facing significant challenges, as growth reaches 20-22% next year, ANZ Asia-Pacific Chief Economist Glenn Maguire told this month’s Papua New Guinea Advantage Investment and Infrastructure Summit in Port Moresby.
The Papua New Guinea economy faces a conundrum: how to finance deficit spending as cheaply as possible. ANZ analysts suggest a global bond issue as a solution. At the same time, ANZ CEO Mike Smith urges a national discussion about how to capitalise on the Asian Century.
After years of relationship building, the BRICS nations-Brazil, Russia, India, China and South Africa-are setting up their investment bank. It’s a milestone for this strange mix of economies, but offers Pacific nations access to investment capital, says BRICS expert, David Thomas.
The International Finance Corporation (IFC) has negotiated an additional US$50 million in funding for the Bank of South Pacific, to expand its financing and promote private sector growth.
The Bank of Papua New Guinea’s move to strengthen the value of the Papua New Guinea kina against the US dollar has taken business by surprise, with some business leaders saying it will impact on primary industry producers.
The Pacific’s increasing integration with Asia, elections in Fiji and more leadership from Papua New Guinea are just some of the factors likely to shape the region over the coming year, according to the region’s three top bankers. In exclusive interviews with all three, Business Advantage PNG canvasses their thoughts on the year ahead.
The Bank of Papua New Guinea this week made a surprising move to support a weakening currency, at the same time acting to restrict the margins being made by the country’s foreign exchange dealers.