MICROCAPITAL BRIEF: Palau, TaiwanICDF Partner to Lend to MSMEs, Provide Business Training with Foci on Young Entrepreneurs, Women

Two government institutions, the National Development Bank of Palau (NDBP) and Taiwan’s International Cooperation and Development Fund (TaiwanICDF), recently crafted a financial inclusion plan to boost micro-, small and medium-sized enterprises (MSMEs) in Palau, with the goal of promoting “inclusive and sustainable growth.” TaiwanICDF will fund NDBP to lend to MSMEs with a particular emphasis on those owned by young people and women. NDBP will “also set up an assistance office to guide borrowers on how to utilize the money to improve their lives or create their own business[es].” The size of the program budget has not been announced.

The mission of NDBP is to promote environmentally conscious economic development throughout Palau. As of 2017, it reported total assets of USD 32.8 million.

TaiwanICDF is the principal body overseeing Taiwan’s overseas development efforts. Established in 1997, the fund aims to promote economic development, social progress and the welfare of people around the world. It reported a total fund balance of TWD 15.6 billion (USD 519 million) as of 2018.

By Kiersten Greene, Research Associate

Sources and Additional Resources
Focus Taiwan article
https://focustaiwan.tw/business/202004030008

National Development Bank of Palau homepage
https://www.ndbp.com

TaiwanICDF homepage
https://www.icdf.org.tw

National Development Bank of Palau financial statement, 2017
https://www.ndbp.com/docs/pages/about-us/financial-statements/2017-financial-statements-and-independent-auditors-report.pdf

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