Letter from the President of the Foundation, Sr. Angelo B.C. Soares.
Allow me to share with you our journey to build our organization and provide quality services over the last fifteen years and my visions for the continued development of KIF.

Our journey and key achievements

We began operations in 2001 as a micro-credit program supported by the U.S-based, non-governmental organization, ‘Save the Children’. From the beginning, our objective was to improve the livelihood of women and poor families through financial services. It has been proven that such microcredit activity is critical and very important for economic development of any country, especially understanding that there are and still are very few financial services available. The program initially only offered one product, a group loan, which provided between $50
and $100 for each group member.
In 2002, management of the micro-credit program was transferred to CRS and the program was then expanded to Baucau District. In 2002, CRS formally registered the program as an MFI under the brand of Tuba Rai Metin or TRM, which in English literally means ‘stand firmly on the ground’.
The operations of TRM were smooth with the support and supervision of CRS until the 2006-2007 crisis, which involved significant civil unrest. As a result of this crisis, 13 MFIs operating in Timor-Leste were forced to discontinue their services
because of losses to assets and confidence.
The impact of the crisis on TRM was also profound. Our Executive Director decided to take refuge in Australia, which
resulted in CRS losing its confidence in the rest of the team and deeming the ongoing operation of TRM to be financially
unviable. As the only senior person remaining, I decided to continue TRM’s operations independently because I believed
at that time that the crisis should not be a reason for us to stop helping people. I was confident to lead the operation
because we had the experience of running the institution smoothly before the crisis.

I introduced many strategies to overcome obstacles at that time; one was that I had to force a large reduction of our
operations. I even went on as far as asking the staff members to work without salary for a few months.
Finally, my decision to continue TRM’s operation as an independent institution has resulted in a success story. This
would not have been possible without the total dedication from such a remarkable team who continued to put their
genuine commitment into TRM through very difficult times.
Some staff members even proved their honesty and loyalty during the crisis by keeping a large amount of cash at
home, a necessity because there was no bank able to accept deposits in the country at that time. While many people
in Dili fled their homes and became internally displaced, not a single cent was lost from the money kept by the staff.
As the country slowly returned to stability, TRM started to gain back momentum and we were able to manage all the
operations independently. In the early of 2007, we began to expand again, opening a new branch in Lautem District.

By the end of 2009, TRM started its partnership with UNCDF through
BASIX, an experienced m i c r o f i n a n c e institution from India. As a result of this partnership, both institutions appointed a technical advisor to assist us in improving our microcredit program. The partnership was significantly beneficial and, in 2010, we
started to offer various types of individual loans, including products for agriculture, small businesses and consumption
loans such as housing, vehicle and education loans. In the same year, after ODTI regulations were developed by BCTL and it became mandatory for every microfinance institution to be regulated, TRM started the process of becoming eligible for an ODTI license. 

TRM entered into a new phase of transformation, from being a ‘non-profit institution’ to a ‘for-profit institution’. During
the transformation process, TRM expanded its branches to all 13 Districts and assisted more than 7,000 beneficiaries
through its loan products. This has made us the finance institution with the widest network in the country. This journey
would not have been successful without funding from Hivos Triodos, Incofin, Grameen Credit Agricole and PlaNis which
provided important assistance during the difficult foundation phase of 2010-2012. From 2013 onwards, TRM started to
have associations with some reputable financial institutions such as the IFC, the European Union, Incofin and BOPA.
Through those associations, TRM benefited from loans, grants and technical support which served to substantially
improve management processes, organization structures and our micro-credit activities. Ultimately, TRM was able to
improve its Gross Loan portfolio from a mere $300,000 in 2009 to over $10 million in 2015.

Becoming an ODTI

As part of the process for obtaining a permanent license, the BCTL evaluated our systems at various branch offices to
determine their effectiveness.
Our risk mitigation practices and internal control procedures were also investigated. Having acquired the full license,
the BCTL conduct an annual on-site inspection to ensure that our operations continue to be sound, robust and in
accordance with the law.
In 2015, the BCTL issued a preliminary ODTI license to TRM, a major milestone on the road to becoming the first ODTI
license holder. As part of the final stage of transformation, TRM had to become a new entity, and we made the decision
to name it Kaebauk Investimentu no Finansas, or KIF.

All the financial assets had to be transferred to KIF and this left TRM as an NGO with separate management and a focus on
agriculture programs and financial literacy.
Meanwhile, KIF continues the micro-credit activities initially undertaken by TRM in a more professional and transparent
manner. KIF is a joint stock company with four shareholders: TRM, IFC, BOPA and the Association of TURAME.
In order to create a robust internal governance regime, we have built a strong and accountable management team,
reinforced the existing corporate governance structures, refined risk management, reporting and control processes.
Improving ourselves is an ongoing process in the fast changing technology landscape and the growing expectations of
external ecosystem.