##2. 9 million as at end of december 2004. the growth in asset values reflects good performance by the board and management of those institutions and on - going supervision by the central bank. membership also increased significantly from 131, 000 in 2004 to 216, 000 as at end of march 2009. the national development bank ( ndb ) is an important development institution that provides credit to development projects such as those in the agriculture sector. development lending is usually targeted towards individuals with low capital and longer grace periods for the repayment of loans. efforts to commercialize the ndb from its mandated function may not assist in achieving the developments objectives of the government. payments system the central bank is also undertaking a strategic project to improve the payments system of papua new guinea. an efficient payment system is therefore a vital component of a modern economy and society. conclusion ladies and gentlemen, in an environment where many banks and financial institutions around the world affected by the global financial crisis are contracting, it is pleasing to note that we in papua new guinea are still expanding. our banking system is sound, liquid and prudentially managed and is prepared to take on the challenges offered in the advent of global financial crises, the fast pace of private lending growth, development of the lng project and a changed risk landscape of png. everyone must play its part in upholding these hard fought gains. thank you.

pressure on the kina. this bold move now allows for a smooth and free movement of capital into and out of the country, and encourages better financial planning by investors. the remaining controls are those for approvals on private capital account contracts between residents and non - residents, approvals to open and operate foreign currency accounts outside png, and licensing of authorised foreign exchange dealers and gold exporters. policy let me turn now to the policy aspect of the financial system infrastructure. early this morning, the bank of png released its july 2005 monetary policy statement, outlining its monetary policy stance for the remainder of 2005 and the medium term. the central bank ’ s monetary policy objective is to achieve and maintain price stability. we have to an extent achieved this, given the low inflation and interest rate levels, as well as a stable exchange rate. not only was these positive outcomes due to favourable international commodity prices but most importantly to sound fiscal and monetary policies. this has resulted in renewed confidence in the economic management of the country as well as expansion in business activities by the private sector. for 2005 and the medium term, we forecast inflation to remain low as the stability in the kina exchange rate will be sustained over the medium term. combined with prudent fiscal management by the government and confidence in the market, the central bank will maintain a neutral monetary policy stance, as announced this morning. achieving and maintaining price stability is not only our monetary policy objective, but is also important for financial planning by all of us. it provides some certainty in price levels for budgeting and investment purposes, particularly on interest rates, exchange rate and inflation. conclusion to conclude, the bank of png is committed to implementing and fulfilling its mandated role of ensuring a sound and stable financial system for the people of papua new guinea and those who conduct business here. we now have in place the necessary legislations and strong independence to safeguard the institutions that we licensed under the various legislations. however, we still have more work to do to in ensuring that the financial system infrastructure continues to be sound and reliable. the economy is in a better shape than it has been for a number of years. but we cannot afford to be complacent and must continue to work towards ensuring these gains are sustained. working together with the private sector, government and the general public, we can all ensure that these gains are passed on to tangible benefits for the rest of the country and its people. the government has been able to undertake significant reforms in