PNG moves to invite European Banks

Papua New Guinea has moved to invite European banks to enter the country. The move  to invite European banks to enter Papua New Guinea will bring competition into the country’s banking sector, Trade, Commerce and Industry Minister Richard Maru (pictured) says.
He said on Wednesday that the Government had extended an invitation to European Investment Bank (EIB) to enter the PNG banking sector.
He said the Government believed that would have an impact on interest rates, which were high in PNG currently, and longer repayment time for loans.
The EIB is the European Union’s bank owned by and representing the interests of European Union Member States and is working closely with other EU institutions to implement EU policy.
“It was interesting the Banks were there and I said the return on investment for all the banks here (PNG) are high,” Maru said during a media conference on Wednesday following his return from a two-week trade and investment mission to Europe.
“With our meeting with European Investment Bank, we’ve asked them to come and set up an office in Port Moresby.
“Yes other international banks that we having been dealing with are important and they will continue to be important, but it is important that we have a relationship with all the major banks.
“Because then you can play one against the other and look at bringing the interest rates down, you can look at longer terms, more concessional terms.
“There is more room for more banks to come.”
He said response from the European banks seemed positive.
“The indications look quite favourable and we are still going to push that if they want our business, they should not operate outside of the country but should come and have an office here in Port Moresby.
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