Fitial: We should be proud of PIDB’s solvency, resiliency

Gov. Benigno R. Fitial said the region should be proud of the solvency and resiliency of the Pacific Islands Development Bank at a time when major U.S. banks have fallen, at the meeting of the PIDB’s board of governors and directors yesterday.

PIDB’s loan portfolio is at $5 million, while the delinquency rate is merely 2 percent, Press secretary Charles P. Reyes Jr. quoted PIDB president Aren Palik as saying.

“The bank has made substantial improvements,” Reyes added.

Guam Gov. Felix P. Camacho, Palau Vice President Kerai Mariur, Yap Governor Sebastian Anefal, Pohnpei Lt. Gov. Churchill Edward, Chuuk Gov. Wesley Simina, Kosrae Gov. Robert Weilbacher and other dignitaries attended the meeting at the Aqua Resort Club in Achugao.

PIDB, which was created by the Association of Pacific Island Legislatures, will be celebrating its 20th anniversary in July.

“That is 20 years of service, helping to develop and grow economies throughout our region: the economies of the member states – Guam, the CNMI, the Republic of Palau, and the Federates States of Micronesia, including Chuuk, Kosrae, Pohnpei and Yap,” said Fitial in his remarks.

Others present included Chuuk Speaker Singkoro Harper, Thomas Pablo, Palau Delegate Secilil Eldebechel, Yap Speaker Charles Chieng, Yap director designate Michael Gaan, Guam Sen. Ben Pangelinan, Guam director for administration Lourdes Perez, Kosrae Sen. Ilai Abraham and Kosrae Sen. Gibson Siba.

Newly appointed CNMI Lt. Gov. Eloy Inos and Rep. Diego T. Benavente were also at the meeting.

Fitial said PIDB’s 20-year existence is a reflection of the strong ties and cooperation throughout the region.

He cited as other examples of strong regional cooperation the Micronesian Chief Executives Summit, which was recently expanded to include more regional members, and the Pacific Mayors Conference, which will be held on Saipan next month.

“In an age when major U.S. banks have fallen, including Wachovia, Washington Mutual, and, yes, even Bank of America and Citibank, we should be very proud of the solvency and resiliency of our regional bank,” he said.

The governor said some private financial institutions, including some sub-prime lenders, may take issue with PIBD’s existence, but the bank’s presence in the region represents a net benefit to the people of Micronesia.

“We need more competition in our local financial markets, and private financial companies should not be afraid to compete for customers,” he added.

PIDB aims to promote economic and social development throughout the region by providing capital to businesses and consumers.

“I encourage the bank’s continued prudent allocation of capital for economic and social development in the regions, and I congratulate our board of governors and directors for the success we have experienced over the past 20 years,” said Fitial as he called on them to “continue working to make the next 20 years more successful for PIBD and our member states.”