TREASURER Ian Ling-Stuckey has announced arrangements for a review of the Bank of PNG, including the review team members and a terms of reference. The review, proposed in the 2020 Supplementary Budget, will be chaired by former chief secretary Robert Igara. The two members are former central bank governor Sir Wilson Kamit and Australian academic Dr Stephen Howes. “These very eminent people, all of whom have detailed experience of the PNG financial system and reform, will be working to a term of reference approved recently by the NEC,” Ling-Stuckey said. “It is the first review of the central bank and the Central Banking Act 2002 since Sir Mekere Morauta’s financial system reforms when he was prime minister from 1999 to 2002. “Much has changed since then, and the effects of the coronavirus pandemic, along with substantial technological advances, have made the need for a review even more urgent. “The aim is to modernise the bank and the legislation in line with international developments, and make it more responsive to prevailing circumstances, while preserving its independence.” The review is expected to be completed in time for the November sitting of Parliament. “An independent advisory group was also established by the late Sir Mekere when looking at the changes that led to the Central Banking Act 2000,” he said. “Igara, currently the University of Papua New Guinea chancellor, was chief secretary at the time, and Sir Wilson was the governor of the Central Bank. “Prof Howes, head of the Development Policy Centre at the Australian National University, has long been involved in PNG research and advice and consultation, particularly in relation to national development.”

Source: June 8, 2021The National Business