In Palau, PSDI is supporting reforms that will help create an enabling environment for strong, sustainable private-sector led growth.
PSDI is working with the Government of Palau to:
Support the commercial strengthening of the government-owned National Development Bank of Palau;
Develop a secured transactions framework, including the launch of an online securities registry, and providing ongoing support to lenders;
Modernize business laws and registration processes, including the preparation of a new Corporations Bill, and development of an online business registry;
Develop a state-owned enterprise policy; and
Support reform through advocacy and analysis, including assessments of Palau’s private sector published in 2007 and 2017.
Resources and Spending
Almost 70% of the $931,373 committed to Palau since 2007 supported financing growth and Business Law Reform initiatives. This funding largely went towards secured transactions reform, which culminated in the launch of an online registry in 2013, work to strengthen the commercial orientation of the National Development Bank of Palau, and the development of a new Corporations Bill.
On this website, $ refers to US dollars unless otherwise stated.
For detailed information on PSDI activities in Palau, download the 2022 PSDI Country Overview here.
Palau at a glance
New Corporations Bill
Secured transactions reform
State-Owned Enterprise Policy
The absence of a clear commercial focus and monitoring framework for Palau’s SOEs has complicated efforts to improve their financial performance, according to ADB PSDI's Finding Balance 2023 report.
MARIANAS BUSINESS JOURNAL: A new PSDI-supported Corporations Act in Palau will modernize and simplify business start-up and operation requirements by eliminating unnecessary and outdated formalities.
The Asian Development Bank (ADB) has welcomed the passing of a new Corporations Act in Palau which will make it easier and faster to start and run a business.
A new, PSDI-supported Corporations Act will make it easier and faster to do business in Palau.
PSDI works with government-owned banks in the Pacific to strengthen their financial positions and increase their ability to provide much-need finance to Pacific businesses.