Liam Cochrane – Radio Australia
East Timor is set to take its oil money out of the United States and spread it across more diverse investments.
Until now the country has invested 90 per cent of its money in US treasury bonds and 10 per cent in different assets.
But under revisions to the Petroleum Fund Law recently approved by East Timor's Council of Ministers, 50 per cent of oil money will be invested in a range of assets, currencies and regions.
It is aimed at mitigating the risks created by the global economic crisis and generating greater economic returns.
But former Minister for Natural Resources, Minerals and Energy Policy, Jose Teixeira, told Radio Australia's Connect Asia risk and transparency issues will remain.
"There is nothing wrong with diversification of the fund," the Fretilin MP said.
"Our concern is with the other aspects, which includes the lowering of the credit rating the fund can be invested in. Currently it has to be AA+ but under one of the proposals, as I've read, it will be brought down to as low as B."
The change to law still needs to be approved by the National Parliament.
East Timor's Finance Minister, Emilia Pires, was unavailable for comment.
Until now the country has invested 90 per cent of its money in US treasury bonds and 10 per cent in different assets.
But under revisions to the Petroleum Fund Law recently approved by East Timor's Council of Ministers, 50 per cent of oil money will be invested in a range of assets, currencies and regions.
It is aimed at mitigating the risks created by the global economic crisis and generating greater economic returns.
But former Minister for Natural Resources, Minerals and Energy Policy, Jose Teixeira, told Radio Australia's Connect Asia risk and transparency issues will remain.
"There is nothing wrong with diversification of the fund," the Fretilin MP said.
"Our concern is with the other aspects, which includes the lowering of the credit rating the fund can be invested in. Currently it has to be AA+ but under one of the proposals, as I've read, it will be brought down to as low as B."
The change to law still needs to be approved by the National Parliament.
East Timor's Finance Minister, Emilia Pires, was unavailable for comment.
.jfif)
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