DILI, 14 december 2023 (TATOLI) – The establishment of a finance company is important to solve the main issue in Timor-Leste’s economy as to how to enhance the economic penetration of credits for individuals, companies, or the private sector, the Governor of the Central Bank of Timor-Leste (CBTL), Helder Lopes, said.
To achieve this, the CBTL, International Finance Cooperation (IFC), and Chamber Commerce of Timor-Leste (CCI-TL) held a seminar today discussing the establishment of a finance company in Timor-Leste, aimed at providing credit on loans for individuals and companies.
The governor of BCTL, Helder Lopes, said BCTL, CCI-TL, and IFC shared information today on the establishment of a financial company in Timor-Leste.
“Today we are sharing more about legal procurements and regulations with the entrepreneurs to be fulfilled to meet the criteria of a finance company in Timor-Leste,” the governor of BCTL, Helder Lopes, told journalists in Timor Plaza, Dili, on thursday.
Mr. Lopes explained that the finance company in Timor-Leste allows credit but does not allow the company to have a deposit.
BCTL expects the entrepreneurs to be able to apply to the Central Bank to evaluate the application forms and also work closely with them to access a license for operating the finance company in Timor-Leste.
In the same place, the representative of International Finance Cooperation, David Freedman, said the IFC is supporting the development of draft laws on finance agencies in Timor-Leste.
“There are some technical assistances provided, such as developing draft laws, providing consultation with private sector and finance agencies, supporting the finalization of regulations and development forms, and also providing license support,’’ he explained.
The President of CCI-TL, Jorge Manuel Serano, said CCI-TL committed to supporting the establishment of a finance company to support economic development in Timor-Leste. CCI-TL is for small and medium entrepreneurs to access credit on loan.
“Otherwise, it takes a long process to access credit in banks, but the finance company can support the individual and company to access credit,” he said.
Timor-Leste currently has four financial organizations, comprising BNCTL, a domestic bank, and three international banks: BNU from Portugal and Mandiri Bank, including BRI from Indonesia, a neighboring country.
However, it requests to have a finance company support the credits for the public to access, due to criteria and some procedures that need to be fulfilled.
This activity is funded by IFC and DFAT through a project to develop a legal framework for secure property with a total amount of over one million USD. This project will be implemented from January 2024 to 2025.
Journalist: José Belarmino de Sá
Editor: Rafael Ximenes de A. Belo
