Timor-Leste starts setting up National Development Bank

22 January 2015

The government of Timor-Leste (East Timor) has launched the process of creating the future National Development Bank (BND), which it believes is an important instrument for economic and strategic development of the country, according to a statement from the Council of Ministers.

In the statement, Ágio Pereira, Minister of State and the Presidency of the Council of Ministers and the government’s official spokesman, said the government intended to have an initial analysis completed by June.

“It’s good to see that steps are being taken for the creation of the Timor-Leste National Development Bank, which will enable Timorese businesses to grow, create jobs and build the nation’s economic infrastructure,” he said in the statement.

The statement noted that in 2010 the government had already approved a resolution to start the process, “recognising the challenges that entrepreneurs Timor-Leste face in accessing finance and noting the importance of adequate access to build the private sector and increase economic growth.”

The government agency responsible for creating the Bank is the State Secretariat for the Support and Promotion of the Private Sector, in partnership with the Ministry of Finance and the Central Bank, the statement said.

Until the overall structure and role of the BND is presented the State Secretariat will examine all the options and assess the strengths and weaknesses of different models.

The government of Timor-Leste is assisted in this review by the Pacific Private Sector Development Initiative, supported by the Asian Development Bank, Australian Aid and New Zealand Aid. (macauhub/TL)