The Central Bank governor has warned the government that its opaque management of trust funds could seriously undermine Papua New Guinea's economic future.

In his latest bi-annual statement [attached below] the governor, Loi Bakani, says the government has already reneged on a promise to open all new trust accounts at the Central Bank, and K103 million from the K592 million announced in the 2010 Supplementary Budget has not been deposited with the Bank.