Bank advised to establish board, structure

The Government has written to Bank of PNG this week advising it to incorporate the Credit Guarantee Corporation and establish its board and structure.
National Planning Minister Richard Maru told the media in Port Moresby yesterday that Government would release some money to the Central Bank next week to start the corporation.
“The Government has approved the Bank of PNG to be the major investor for the Credit Guarantee Corporation,” he said.
Maru said the Bank of PNG would provide K50 million and the government would provide K20 million this year as equity in the name of Kumul Consolidated Holdings (KCH) to support them launch this company.
“We are hoping that the banking sector in Papua New Guinea, like Malaysia, will all take up equity in this Credit Guarantee Corporation,” he said.
“In Malaysia, citizens could not obtain loans because they do not have security and have been able to obtain loans through the credit gurantee cooperation.”
Maru said Malaysia was the most-successful model in the world and the key driver of small-to-medium enterprise (SME) growth.
He said the corporation would support the people get into business.
“This is one of the most-important historic decisions of the Government,” Maru said.
“We are putting money where our mouth is by putting K20 million to invest with the private sector and the Bank of PNG.
“This will ensure that this corporation is established and our people benefit by borrowing.”