Project and implementation of the Timor-Leste National Development Bank
The Resolution about the action plan for the creation of the Timor-Leste National Development Bank was approved by the Council of Ministers 11th of May last but the project for its creation was already started to be developed last year.
In 2009 eight million dollars were allocated for the constitution of a class A bank, the bank licence that is intended for the National Development Bank, which will focus its action on capital financing and functioning of medium to large companies. A capital of US$ 6 million is necessary for this bank class “therefore, at the moment, we have US$ 8 million to succeed in having a class A bank” concluded the Vice-Minister of Economy and Development, Cristiano da Costa.
In what concerns the structure of the future institution, the Ministry of Economy and Development is currently constituting a multidisciplinary technical team to prepare the formal process that will determine the bank’s generic structure, meaning that, besides taking care of the bank licence, this working group will suggest what will be the institution’s detained capital, the calendar for the necessary activities and its complete implementation.
The Vice-Minister of Economy and Development said in advance that “it was already decided that the majority of the capital, 51% at a minimum, will be shares that will belong to the State, and part of the remaining 49% will be for private shareholders, national or international”.
The contracts for potential shareholders are also being prepared. According to Cristiano da Costa, in this phase, “it is being discuss if we will open or limit the number of shareholders. There are advantages and disadvantages for the two options. If we limit, the advantage is that the decision will be concentrated, especially regarding private action. If we open, we will have more shareholders and decisions will be less concentrated and that will create more difficulties in decision-making and in the execution of the necessary measures for progress, for the development of the bank itself”.
The headquarters of the new Development Bank will be in Díli, were 85% of the potential clients are located. “We have already identified the location for the bank’s operational functioning, which we will soon rehabilitate,”, said the Vice-Minister Cristiano da Costa.
