BPNG urged to review policies

The National Business

THE Bank of Papua New Guinea needs to review its monetary policies and financial regulations to meet changing international practices, the Independent Advisory Group (IAG) reports.
It said Papua New Guinea’s unique circumstances and economic structure needed to be taken into account with Government fiscal policies. The IAC in its phase one review of the Central Banking Act 2000 report to Treasurer Ian Ling-Stuckey in October found that international best practices had changed.
Ling-Stuckey had issued terms of reference to the IAG on May 13 covering the issues of:

  • GOVERNANCE;
  • ACCOUNTABILITY and transparency;
  • GOVERNMENT financing;
  • CRISIS management; and,
  • THE Bank’s objectives, and issues for the second phase of the review.

In response, the IAG made 31 recommendations covering the issues.
The IAG said: “Our vision is a Central Bank that is both independent and accountable, whose discretion is limited by law, and whose objectives are aligned to its functions.
“Our recommendations draw on detailed analysis – both what has worked and what has not, both in Papua New Guinea and internationally – to transform that vision to reality.
“The Central Banking Act 2000 transformed Bank of PNG’s performance with positive results for the economy and Papua New Guineans. A second round of reforms is now needed, and could have the same transformational impact again.”