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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)
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)

Additional Resources