Let me first mention the underlying framework, which gave rise to the current positive developments we are now seeing in PNG. A major Government initiative was the reforms to the financial sector, which began in 2000. A new Central Banking Act and Banks and Financial Institutions Act were enacted.
These gave the Central Bank a focused set of objectives, increase its independence and improved regulation and supervision of the financial system. The Central Banking Act also limited the Government’s access to Central Bank financing and introduced a new Board with wider community representation.