Banks ‘pushing’ loan products

THE financial sector has recently noted a progressive trend in personal loans, according to PNG Business Council executive director Douveri Henao.
“The trend that has been seen across the financial services space and even the banks is that they are constantly pushing loan products to make them accessible,” Henao said.
“In some cases it’s seasonal, like now there will be a whole lot of application for school fees.
“In terms of personal loans space, the feedback that I’ve had from banks and financial institutions is actually quite progressive. It hasn’t flattened. But if you are talking about major commercial loans, domestic and foreign investment expansions and things like that, the one sector that has been performing quite strongly has been agriculture.
“There has been a huge interest in factory expansions, huge interest in loan financing and rehabilitation of plantations.
“That particular performer has been quite strong. I’m purely speaking from commercial customers.”
Henao said from the private sector standpoint, agri-finance had been quite strong in the past 18 months.
“That’s an indication that the downturn in the oil, gas and mining has made investors and financiers look at other sectors that can still yield investments, and so forth.
“So the agri space has been quite exciting although it’s not as huge and large as the extractives. The agri ones have been proactive.”