The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

In dire need of credit

East Timor’s only shot


Timor’s banking system is a reflection of its history. There are three banks with a presence, all foreign, one each from the country that colonized it (Portugal), occupied it (Indonesia) and helped liberate it (Australia): Caixa Geral de Depósitos, Bank Mandiri and ANZ respectively.

These banks are arguably seen as conduits for capital to leave Timor rather than helping to bring it in. "Apart from the Portuguese bank, the others are not giving any loans to people," says João Mendes Gonçalves, minister of economy and development. "They claim this is mainly geared to the risks associated with loans, and we understand all that – our legal framework is not complete yet." Instead, "they are in deposits from people, transferring money overseas, and getting commission from that".

ANZ itself, which set up in January 2001 even before Timor’s formal independence, says it supports "both international firms and a fast-growing Timorese client base", offering savings, transactional banking products and international services for personal customers, commercial clients and government and non-government organizations. A spokesman says ANZ "sees a number of opportunities... to play a strong role in the development of Timor-Leste as a nation," including facilitating foreign investment, lending and providing banking services to the public sector.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree