The Papua New Guinea Securities Commission and the Asian Development Bank’s Pacific Private Sector Development Initiative have signed a Memorandum of Understanding to foster capital market development and improve inclusive access to financing for PNG businesses.
This important program of work will take place over the next 2.5 years and has been facilitated by the provision of A$1.3 million in earmarked funding from the Australian Government.
Acting Governor of the Bank of PNG and Chairman of PNG’s Financial Services Council (FSC), Benny Popoitai, said the reform initiative was of critical importance not only for PNG’s financial sector, but also for the overall growth of the economy, given the role that financial markets play in terms of mobilization. savings and investments, as well as the transmission of government monetary policies.
“On behalf of Bank of PNG, Treasury and SCPNG, which make up FSC, I thank PSDI for their continued technical support over the years, to which this MoU serves as an extension,” he said. -he declares.
SCPNG Acting Executive Chairman Robert Salmon-Minak said the partnership is important to SCPNG as it strives to increase the contribution of PNG’s financial sector to economic and social development.
“It builds on SCPNG’s foundational work on capital market development and capacity building in a way that is both strategic and essential for PNG. The MoU is the product of months of engagement between PSDI, the Treasury and the Bank of PNG,” he said.
“SCPNG acknowledges their contributions and looks forward to the implementation of the MoU.”
Developing PNG’s capital market and strengthening the SCPNG are key deliverables under the PNG Government’s Financial Sector Development Strategy (FSDS) 2018-2030, which is overseen by the FSC.
The MoU describes the technical, operational and political cooperation that will take place between the PSDI and the SCPNG.
Key areas of work include strengthening SCPNG’s role as regulator of PNG’s capital market through capacity building measures and developing a sound capital market strategy, including reforms policy, legal, regulatory and technology to support a vibrant capital market in PNG.
Mainstreaming women’s economic empowerment will be an important part of this work.
“Developing capital markets will improve inclusive access to finance for businesses in PNG,” said Regional Director of the AfDB’s Liaison and Coordination Office for the Pacific, LotteSchou-Zibell.
“The AfDB is pleased to support the FSC and the SCPNG in this important continuation of work. The Australian Government is pleased to support the development of PNG’s capital market through this reform programme,” said Australian High Commissioner to PNG Jon Philp.
“Expanding investment opportunities in PNG will help drive economic growth, jobs and prosperity.”