Wealth Creation Losing Shine Whilst Still Inside the Shell

Disappointed Nationalist

The Sale of the 5% shares of BSP to the World Bank owned Investment company - IFC by IPBC smells fishy. The absurdity has also been helped by BSPs sale of another 5% to this international financial institution to make its ownership swell to 10%.

NASFUND has been quite disappointed lately on a number of BSP decisions. One of these comments is quoted below.

Jury out on excessive capital raising

Where NASFUND remains skeptical is the current large capital adequacy of the Bank (approximately 24%) and whether it is required. The Bank has been collecting capital far in excess of current needs. This is also well above the regulatory minimum and currently represents in our view lazy capital. The Banks argument that they need additional capital because they want to participate in increased loan activity surrounding the LNG project cannot be faulted however BSP has probably over estimated the amount of capital required, considering that the evidence to date is that the majority of the financing for the project is happening outside the country. Similarly the hardened attitude to lending by all the Banks since the Global Financial Crisis suggests that many local, participants will find loan financing from the banks an arduous exercise unless current lending policies are relaxed. The task of the Bank over the next year is to deploy the capital, not collect any more.

What the heck has prompted the BSP Board to sell another 5% sales to IFC when it already has huge lazy capital to lend? I dont buy the technical expertise bollocks as there are many other reputable banking and financial institutions out there that can easily help.
Please dont make bed with a known international criminal like IFC.

That deal appears to have been cooked behind closed doors. The Prime Minister's public announcement confirms the fears of the Opposition Leader. Did the World Bank entity - International Finance Corporation (IFC) get the deal after a publicly run and competitively run share purchase arrangement?

Don't Papua New Guinea Financial Institutions like the NASFUND, Nambawan Super and others not have the money to buy these 5% shares on behalf of ordinary Papua New Guineans?

What kind of special investment and technical expertise does the IFC has that the other businesses don't?

The World Bank - IFC has too many questionable loans and investment decisions that it had entered with countries like Ghana, India, Chad, Cameroon and many developing countries - the results that are not so impressive.

Some of these countries have been reduced to loan depended, fragile and hostile countries with the poverty reduction gospel turning completely opposite.

Somare and NA Government, the citizens of this country are not impressed with your secret sweet- heart deals with such organisations.

Why are you selling everything too fast to foreigners?
Certainly this doesn't agree with your 2050 Vision one of its supposed pillars is local wealth creation. This move is not wealth creation. It is a redicilous act of wrath creation . And it is completely unacceptable.

Your engagement of an intimidating and manipulating foreign financial body into the national iconic bank is raising more questions than answers.

What has happened to all the surpluses and countless trust accounts that are supposed to be channeled into vital infrastructure developmental projects and subsidized lending to Papua New Guinean owned businesses for wealth creation for Papua New Guineans?

Certainly Papua New Guineans don't need the Word Bank's IFC meddling with our nationally owned bank. There are countless other reputable investment bankers out there that our bank can source technical expertise and additional investments from - but certainly not with IFC.

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