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Business |
BPNG records K109million profit in
2006
Government paid K33million dividend
By BIBIAN BARRENG
THE Bank of Papua New Guinea (BPNG)
posted a K109 million profit last year, the highest ever for the
bank
In the presence of the board yesterday, BPNG Governor Wilson Kamit
presented the first dividend payment of K33 million to outgoing
Treasury Minister Sir Rabbie Namaliu.
Sir Rabbie noted Central Bank’s previous year’s profit
performance, saying the bank posted K25 million in 2005, K17
million in 2004 and K64 million in 2003.
He said Papua New Guinea was experiencing the benefits of the
economic recovery and sustained macro-economic stability over
three to four years.
“I had endorsed the Bank’s recommendation to transfer K68.5
million of the operating profit to the reserves funds for
contingency purposes as the bank takes on new responsibilities in
the floating exchange rate environment.”
“Thus, it is important to have sufficient contingency funds
available to counter any adverse shocks on the bank’s future
operations,” Sir Rabbie stated
He said the dividend figure represented a sound financial
performance that had come with adherence to good governance and a
very dynamic and vigilant board.
Sir Rabbie said the outstanding performance of BPNG last year
complemented good export revenues that had resulted in a
record-level of foreign exchange reserves, a stable currency and
the low inflation rate.
“Whilst high international prices for most of our export
commodities and fine weather conditions had contributed to this
favourable economic performance, there was no belittling the
significant policy impact the Government had made to reach this
level,” Sir Rabbie said.
Mr Kamit added that the above resulted in a very stable
macro-economic environment comprising fiscal surpluses, low
inflation, low interest rates, an appreciating exchange rate and
fast accumulation of foreign exchange reserves.
“Our foreign currency reserves had increased from around US$300
million (K822.6 million) to US$1.85 billion (K5.07 billion)
today,” Mr Kamit disclosed.
He said the economic activity, as measured by GDP growth, is
projected by the bank to be high at 4.5% this year while BPNG was
encouraged by the optimism of Sir Rabbie who projected GDP growth
at 5.25% in a recent presentation of the mid-year economic
assessment and fiscal outlook.
The governor had called on authorities for the removal of
impediments to investment.
He also urged an increase in efficiency and a reduction of the
cost of running public utilities and basic infrastructure to
enhance investment and economic growth.
“Just look at the state of origin games and see the value of
competition … if privatisation or corporatisation or right-sizing
was such an unpalatable approach, let us not mark time.”
“Let’s get on with competition in the telecommunication, power and
public utilities industries,” Mr Kamit urged.
Sir Rabbie expressed his satisfying experience as the minister for
Treasury, having contributed to the sound fiscal management of the
Government during his short tenure in the ministry after taking on
the role from Bart Philemon.
 
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