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Decree-Law No. 23/2017 creating the Credit Guarantee System for Micro, Small and Medium Enterprises.

Country/Territory
Timor-Leste
Document type
Legislation
Date
2017 (2020)
Source
FAO, FAOLEX
Subject
Agricultural & rural development
Keyword
Credit Agricultural development Cooperative/producer organization Smallholders/peasants Sustainable development Gender
Geographical area
Asia, Asia and the Pacific, Indian Ocean, Least Developed Countries, Small Island Developing States, South-Eastern Asia
Entry into force notes
This Law enters into force on the day of its publication.
Abstract

This Decree-Law, consisting of 18 articles, creates the Credit Guarantee System (SGC) for Micro, Small and Medium Enterprises (MPME), establishing its legal regime. The SGC is a public credit guarantee programme, managed by the Central Bank of Timor-Leste (BCTL), under the terms provided. This System will be applied by financial institutions authorized to operate in Timor-Leste. The purpose of the SGC is to: a) Encourage the formalization and growth of MSMEs; b) Promote the productivity of MSMEs and job creation through the financing of mechanisms for technological modernization and innovation; c) Facilitate the granting of credit and adequate financing in areas and sectors of activity considered as priorities for national development and the diversification of the economy; d) Encourage national entrepreneurship and the participation of women and young entrepreneurs in the creation of their own jobs; e) Encourage entrepreneurship and the creation of MSMEs in rural areas; f) Contribute to the expansion of access to banking and financial services and, at the same time, encourage responsibility for the timely payment of credits.

Full text
Portuguese
Website
www.legis-palop.org