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.

Palau2007 2019 web

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

PSDI has supported the preparation of a new corporations bill, which was passed by the House of Delegates in 2018, and is now being considered by the Senate Committee.

Secured transactions reform

Palau’s Secured Transactions Act passed Parliament in May 2012, and an online registry was launched in January 2013.

State-Owned Enterprise Policy

PSDI supported the development of a state-owned enterprise policy for Palau that was endorsed by the President in late 2014.
Latest News
5 June 2023
Commercial focus crucial for Palau state-owned enterprises — ADB report

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.

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18 November 2021
PSDI Experts address Palau Economic Symposium

Three PSDI Experts have given presentations to the Palau Economic Symposium, hosted by the country’s Ministry of Finance and focused on new pathways to economic growth.

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1 November 2021
Palau has a new Corporations Registry law designed to modernize

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.

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21 October 2021
ADB welcomes new Corporations Act to boost business in Palau

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.

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21 October 2021
New, PSDI-Supported Corporations Act to Modernize and Streamline Business Start-up and Operations in Palau

A new, PSDI-supported Corporations Act will make it easier and faster to do business in Palau.

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30 April 2021
Strengthening the Financial Position of Pacific Government-Owned Banks

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.

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Key Publications
Unlocking Potential: A Gender Inclusive Private Sector Framework for the Pacific Report and Country Assessments
Unlocking Potential: A Gender Inclusive Private Sector Frame...
The Gender Inclusive Private Sector Framework serves as a practical checklist for Pacific governments and institutions to measure progress and identify areas where further improvements are needed.
Innovative Financing Mechanisms in the Pacific
Innovative Financing Mechanisms in the Pacific
This paper examines the potential benefits and issues to consider around implementing Innovative Financing Mechanisms in the Pacific, which can lower barriers and provide more options for businesses seeking finance.
PSDI Annual Report FY2022
PSDI Annual Report FY2022
This report gives an overview of PSDI activities from July 2021 to June 2022.
PSDI Tourism Infographic Brochure
PSDI Tourism Infographic Brochure
This infographic brochure illustrates PSDI’s work and key achievements in the Pacific tourism sector.
Finding Balance 2023: Benchmarking Performance and Building Climate Resilience in Pacific State-Owned Enterprises
Finding Balance 2023: Benchmarking Performance and Building ...
This report reviews the performance of SOEs in nine Pacific island economies and looks at how policymakers can help state-owned power utilities address climate risk.
A Secure Retirement: Leveling the Playing Field for Women in the Pacific
A Secure Retirement: Leveling the Playing Field for Women in...
This publication proposes a series of priority reforms to address women’s disadvantage in accessing benefits from Pacific retirement funds.