Palau

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.

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
23 February 2019
High-end Tourism Best Option for Economic Growth in Palau: ADB

KOROR, PALAU (23 February 2017) — Strong economic growth is masking urgent infrastructure and environmental challenges that threaten the long term sustainability of Palau’s economy, says an Asian Development Bank (ADB) report released in Koror today.

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23 February 2017
Private Sector Assessment for Palau: High-end Tourism Best Option for Economic Growth

Strong economic growth is masking urgent infrastructure and environmental challenges that threaten the long term sustainability of Palau’s economy, says our private sector assessment published today. Private Sector Assessment for Palau: Policies for Sustainable Growth warns that the rapid growth of low-end tourism could damage Palau’s famed natural environment and World Heritage sites, which are pivotal to maintaining tourism as the country’s leading source of revenue. The report was launched by the President...

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Key Publications
PSDI Annual Progress Report 2018–2019
PSDI Annual Progress Report 2018–2019
This report gives an overview of PSDI activities from July 2018 to June 2019.
Finding Balance 2019: Benchmarking the Performance of State-owned Banks in the Pacific
Finding Balance 2019: Benchmarking the Performance of State-...
This report profiles the roles, performance, market context, and regulatory frameworks of 13 state-owned banks in 10 Pacific countries.
Finding Balance 2019: Benchmarking the Performance of State-owned Banks in the Pacific
Finding Balance 2019: Benchmarking the Performance of State-...
This report profiles the roles, performance, market context, and regulatory frameworks of 13 state-owned banks in 10 Pacific countries.
PSDI Annual Progress Report 2017–2018
PSDI Annual Progress Report 2017–2018
This report gives an overview of PSDI activities from June 2017 to June 2018.
PSDI’s Second Newsletter: July–December 2016
PSDI’s Second Newsletter: July–December 2016
This newsletter looks back at PSDI activities over the period July-December 2016.
PSDI Annual Progress Report 2016–2017
PSDI Annual Progress Report 2016–2017
This report gives an overview of PSDI activities from June 2016 to June 2017.