DILI, 21 August 2020 (TATOLI)– Similar to the Government’s Policy to establish a plan for economic recovery, business people from Timor-Leste, including president of Timor-Leste Trades and industry, Oscar Lima, asked the Government to create more investments into commercial banks as a means to implement a good charge.
“We ask the Coordinator Minister of Economic Issues and the team that prepare the economic recovery plan to set the fund in Timor-Leste bank, but specifically in Timor-Leste National Commercial Bank (BNCTL) to provide good fees for people to arrange the industry,” the President for CCI-TL, Oscar Lima said.
According to Oscar Lima, when there is no investment in the bank, it will not be able to assist in economic recovery.
“if we don’t do this, I think we won’t have the ability to have economic recovery” he said.
He said, the Government needs to capitalize on BNCTL, in assuring them on reducing interest charges, in order for the businesses to do investments into the private sectors such as agriculture.
“The law is yet to be clear, regarding the bankruptcy and regarding the land rules, there is no decree of law to issue out ownership certificates, thus these things have prevented banks from giving credit with a small amount of interest.’
“we have discussed this with the banks but they said the amount for charge is big due to the risk is high,” he said.
He also asked parliament to defend any proposals from the Coordinator Ministry of Economic Issue (MCAE) regarding the capitalization of BNCTL, during any discussions because it is important to give the credit to the people to open their businesses.
Answer to this, FRETILIN’s member in PN, Francisco Miranda Branco, confirmed, there are plans to change this limitation.
“For example with $5million investment, our National Bank can demonstrate it is competent, thus it is time for the state to do more investment in our national bank,” he said.
The current interest charge on credit with BNCTL initially was at 17% however now it is around 6% to 12% percent, and for the veterans the BNCTL interest charge is 6%.
Journalist: Antónia Gusmão
Editor: Julia Chatarina/Nick Kettle
Translation: Nelia Borges
