DILI, 22 november 2023 (TATOLI) – The Board Member of the National Bank of Commerce of Timor-Leste (BNCTL), Joaquim dos Reis Martins said the Fasilidade Garantia Crédito Suave (Soft Loan Guarantee Facility) is going well, but stating that it depends on the government’s decision to whether continue the program.
Fasilidade Garantia Crédito Suave is a loan guarantee scheme to provide low-interest loans for companies and individuals. The loans are awarded by financial institutions (BNCTL) that celebrate a contract with the Government to provide low-interest loans that are guaranteed by the Government. The Soft Loan is granted to micro, small, and medium-sized enterprises (MSMEs) a low interest rate (3% per year).
The soft loan (Credit Suave) has been suspended since the IX Government took office in june 2023.
“The decision is now up to the Ministry of Trade and Industry,” said Martins.
According to him, the companies and individuals receiving the loan from BNCTL are paying very well.
He said that 47 companies have taken loans from BNCTL to run businesses in various sectors, including agriculture, tourism, trade, and so on.
“Currently, BNCTL’s loans to companies and individuals reach US$700,000,” Martins added.
Cruz asked the government to continue implementing this program because it is beneficial for micro, small, and medium-sized enterprises in Timor Leste.
Echoing Martins’ statement, the Minister of Trade and Industry, Filipus Nino Pereira, said that the government had decided to continue implementing the program: “But, MTI team will have to revise all the requirements and data of the soft loan program before resuming its activities.”
Journalist: Jose Belarmino de Sá
Editor: Filomeno Martins