Organisations sign capital market development partnership

THE development of the country’s capital market will be further enhanced following a partnership signed yesterday between two organisations.
Securities Commission of PNG (SCPNG) and the Asian Development Bank’s Pacific Private Sector Development Initiative (PSDI) signed a memorandum of understanding yesterday to promote capital market development and improve inclusive access to finance for PNG businesses. It outlined technical, operational, and policy cooperation to take place between the PSDI and SCPNG.
It will strengthen SCPNG’s role as PNG’s capital market regulator through capacity-building measures, and developing a robust capital market strategy, including policy, legal, regulatory, and technology reforms to support a vibrant PNG capital market.
Bank of PNG acting governor and Financial Services Council chairman Benny Popoitai said the reform initiative was important not only for PNG’s finance sector, but also for the overall growth of the economy, “given the role financial markets play in mobilising savings and investments, as well as enabling transmission of monetary policies of the government”.
SCPNG acting executive chair Robert Salmon-Minak said the partnership was important for SCPNG as it strives to increase the PNG finance sector’s contribution to economic and social development.
The programme will take place over the next two-and-a-half years and has been facilitated by the provision of AU$1.3million (K3.08million) in funding from the Australian Government.
Australian High Commissioner to PNG Jon Philp said: “The Australian Government is pleased to support the development of the PNG capital market through this reform programme. Expanding investment opportunities in PNG will help spur economic growth, jobs, and prosperity.”
ADB Pacific Liaison and Coordination Office regional director Lotte Schou-Zibell said: “The development of capital markets will improve inclusive access to business finance in PNG.”