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17 November 2008

East Timor Government Decree Law No 22 of 2008 Establishing the Economic Stabilisation Fund

Warning: Not an official translation

IV Constitutional Government of the Democratic Republic of East Timor
Decree-Law no. 22/2008 of 16 July
Establishing the Economic Stabilization Fund

The establishment of an Economic Stabilization Fund is intended to face the economic recession presently felt at the global level, namely the food crisis and the increase in food prices worldwide, and according to the recent Declaration on World Food Security made in Rome by representatives of 180 countries and the European Union.

Moreover, the need arises to take necessary measures to combat the negative effects of increases in the prices of fuel and construction materials.

In the short term, the Economic Stabilization Fund shall be used to rebuild the capacity of the economy and to develop programmes to support the population in addressing the effects of the crisis.

The current decree-law creates technical and financial mechanisms to ensure Timor-Leste’s food security and sovereignty, as well as the socio-economic development and meeting the needs of the Timorese community.

Pursuant to article 115(1)(o) of the Constitution of the Republic, the Government enacts the following to have the force of law:

Article 1 Designation
1. The Economic Stabilization Fund, hereinafter referred to as the Fund, is hereby established with the Ministry of Finance.

Article 2 Objectives
The objectives of the Fund shall be:
a) To ensure the supply of goods and food security;
b) To stabilise prices by intervening in the market;
c) To ensure the supply of construction materials.

Article 3 Establishment of the Fund
The Fund is financed from the State Budget.

Article 4 Funding
The procedure for obtaining financial support from the Fund shall be as approved in a specific regulation.

Article 5 Expenditure
The expenses of the Fund shall be those resulting from the application of the provisions of the regulation referred to in article 4 above.

Article 6 Revenue
The proceeds resulting from the sale by economic agents of the goods funded under article 4 shall be considered State revenue.

Article 7 Monitoring and reporting
UNTAET Regulation no. 2001/13, on budget and financial management shall apply to monitoring and reporting activities.

Article 8 Collaboration with other entities
The Ministry of Finance may request from relevant entities the information it deems necessary to pursue the objectives of the Fund.

Approved by the Council of Ministers on 16 June 2008.

The Prime Minister, (Kay Rala Xanana Gusmao)

The Minister of Finance, (Emilia Pires)

Promulgated on 14 July 2008.

To be published.

The President of the Republic, (Jose Ramos-Horta)

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