Timor-Leste
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Debt Vulnerability
Moderate Risk of external debt distress
Sustainable Development Finance Policy
Performance and policy actions required : Yes
Set-aside applied : Yes
Non-concessional borrowing ceiling : Zero
Performance and Policy Actions (PPA)
Fiscal Sustainability
To enhance oversight of State-Owned Enterprises (SOEs) and improve fiscal risk monitoring, the government has published financial information of all State-Owned Enterprises (SOEs) as an annex to the 2025 Budget Law. This will include financial information for all SOEs including transfers and subsidies from the State, operating subsidies, capital injections, tax breaks and key performance indicators.
Debt Management
To improve debt sustainability, the Government will not enter into any contractual obligations for new external public and publicly guaranteed (PPG) non-concessional debt in FY25, except if the non-concessional debt limit is adjusted by the World Bank to: a) reflect any material change of circumstances; or b) in coordination with the IMF, in particular in line with adjustments in the IMF Debt Limit Policy (DLP).
FY24-Fiscal Sustainability
To strengthen fiscal sustainability, the Government has published a Fiscal Risk Statement in its 2025 Budget Law, which includes information on macro-fiscal risks and public debt and financial information on EDTL, a State-owned Enterprise (SOE) responsible for producing and distributing electricity. EDTL financial information will include, subject to data availability, its recent financial performance, key financial metrics, a comprehensive breakdown of its outstanding debt categorized into guaranteed, on-lent, and nonguaranteed parts, transactions with the government and quasi-fiscal activities.
World Bank Lending
Grant eligibility : | 100% credits | Credit terms : | Small Economy |
Lending amounts by fiscal year (commitments, US$ millions)
- Original Principal value of IBRD Loans
US$ 0.00 million - Original Principal value of IDA Credits
US$ 255.20 million - Original Principal value of IDA Grants
US$ 0.00 million
Data as of: 06/30/2025
Total lending at project level, for the period from FY2017 to FY2023
Debt Data
Total external debt stock
12.62
% of GNI (2023)
Total debt service
2.06
% of exports (goods, services, and primary income,2023)
Country Characteristics
Population, Total
1.40 million
(as of 2024)
GNI, Atlas Method
2.18 billion
(in current US$ as of 2024)
GNI per capita, Atlas Method
1560
(in current US$ as of 2024)