Portugal grants 100 million-euro credit line for projects in East Timor

22 September 2009

Dili, East Timor, 22 Sept – The Portuguese government has granted a 100 million-euro credit line to East Timor for projects to be chosen by the East Timor government.

The initial amount of the Aid Credit Line may be increased up to 500 million euros according to a memorandum signed Monday in Dili

The credit line is for funding infrastructure investment projects in East Timor with the participation of Portuguese companies, especially small and medium-sized enterprises (SMEs), in the areas of energy, transport and communications, health and education.

The two sides also signed a memorandum on double taxation, the convention of which is due to be signed by the end of January 2010, as both East Timor and Portugal consider it important to fight tax evasion and to stimulate private enterprise and create a favourable business climate.

A third memorandum also signed Monday created a technical cooperation programme which includes a visit by technicians from the Portuguese Finance Ministry in October.

The governments of Portugal and East Timor in September signed the Indicative Cooperation Program (PIC) for the next four years, estimated at 60 million euros. (macauhub)