PNG Bank governor says shortage of forex affecting businesses, interest rates comparatively ‘very high’, and ANZ identifies small inflation rise. Your weekly digest of the latest business news.

PNG is experiencing a very low inflow of foreign currency that is affecting a lot of companies and business houses, the Governor of Bank of Papua New Guinea Loi Bakani, has told a media conference in Port Moresby. But he says, there is no need for concern.

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Papua New Guinea has very high interest rate margins compared to countries with similar financial market structures which is detrimental to investments/business growth and welfare, according to Professor Satish Chand, University of New South Wales. He says the margins are 10.3 in PNG, compared to 5.8 in Indonesia, 1.8 in Malaysia and 5.8 in East Asia and the Pacific.

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The ANZ Monthly reports inflationary pressure in PNG. The third-quarter year-on-year Consumer Price Index rose 5.3%, compared to 5.1% in the previous year. Exports fell 6.9% in the same period, compared to a 19% boost in the previous year. Imports fell 43.5% over the year.

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The Porgera gold mine in Enga province. Credit: Barrick Gold Corp.

Barrick Gold Corp says a claim from Papua New Guinean landowner group, Justice Foundation for Porgera (JFP), which states property owners in the Porgera gold mine area had their livelihoods ‘catastrophically changed’ because of the operation, has no legal merits.

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The CEO of the eight-member Parties to the Nauru Agreement, Dr Transform Aqorau, has rejected criticism of PNA’s Vessel Days Scheme (VDS) by NZ and US industry interests. ‘Under the VDS, purse seine fishing in our waters has been tightly controlled, with satellite tracking and observers on board every vessel,’ Dr Aqorau told Business Advantage PNG. He also called again for Japan and Taiwan to stop building boats that will lead to further depletion of Pacific tuna stocks.

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Village oil palm growers in West New Britain Province are calling for the quick release of relief aid from the government, after heavy rains. They want seedlings to help replace the palm trees that were destroyed by the strong winds.

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Prime Minister, Peter O’Neill. Credit: PNG Blogs

The PNG Government will reintroduce the “Stret Pasin Stoa Scheme” to support citizens take back or take over trade stores, tucker boxes and other small businesses currently operated by foreigners. Trade Minister Richard Maru said Prime Minister, Peter O’Neill, will officially launch the scheme this week, and said all shops and small businesses owned by foreigners must be bought, managed and operated by PNG citizens over the next three years.

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Twelve participants of the Senior Leadership Development Workshop, conducted last month by Deloitte in conjunction with Independent Public Business Corporation (IPBC), have been awarded certificates for their participation. They included John Tangit (PNG Power) Sundar Ramamurthy (bmobile-Vodafone), Daniel Wanma (LinkPNG), Joseph Kintau (Government & External Relations), Une O’Ome, (DataCo PNG), Dr Fifaia Matainaho (Eda Ranu), Desmond Yaninem (National Development Bank), Amos Tepi (Post PNG), Jeffrey Bean (Telikom PNG), Billy Imar (Water PNG) and Evangeline Taunao (SOE operations).

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InterOil Corp has announced a US$290 million (K768.21 million) net profit for calendar year 2014. This compares to a US$40.4 million (K106.5 million) loss for 2013.

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East Sepik remains the top producing cocoa province in Papua New Guinea after accounting for more than 32% of output in the past year, according to a report on the industry. Overall, cocoa production was down 10% in the June quarter of 2014 against the same period a year earlier.

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The Vanuatu Government says it has food supplies to last up to three weeks. The government has started to hand out aid to the 160,000 people affected by Cyclone Pam, but some critical areas still face a lengthy wait. Aid has now totalled US$10 million. Meanwhile, business owners in Vanuatu’s northern islands say they are open for business, but are struggling to persuade visitors of that.

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Foyson Resources Ltd, which is exploring the Amazon Bay project southeast of Port Moresby, has completed a deal to acquire Integrated Green Energy’s Berkley Vale diesel and petrol conversion plant and technology licences.

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Kina Petroleum Ltd says it is overcoming poor weather to prepare for drilling activities in Madang as the company advances an exploration program in Papua New Guinea focussing on the PPL 337 and PPL 338 licences.

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Larus Energy Ltd says it is on track to complete a placement of 60 million shares that would see the company raise A$3million to help fund a drilling program on the PPL 325 licence.

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State Enterprises Minister, Ben Micah

Public Enterprises Minister, Ben Micah, says PNG Power is now ‘in the black’, after collecting outstanding debts, a report on the way the future for the company and electricity services will go to Cabinet. Micah said the state of emergency for the company is now over and has achieved its purpose.

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The Board of NASFUND Contributors Savings & Loan Society Limited (NCSL) has announced a K5.6 million profit.

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PNG being chosen to host soccer’s 2015 Under 20 Women’s World Cup has been described as a ‘big vote of confidence for football in the Pacific’ by the Papua New Guinean Football Association.

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The ELC–PNG National Church Council has decided to restart Lutheran Shipping Services. It will have a new 38-metre roll-on-roll off catamaran, combined 150 passenger-cargo vessel built for delivery in PNG waters by the first week of December.