By Agnes M. Abrau
Horizon news staff

The receiver of Pacific Savings Bank announced that the loan it requested from the National Development Bank of Palau was not approved on the grounds that it needs additional audited financial statements, collateral and other information necessary for its approval.
The $1.5 million was supposed to be used to “consolidate claims and payout cash for the first class depositors (up to $2,000 per
depositor).”
In a press statement, PSB receiver Kaleb Udui Jr. said NDBP advised him that it would review another loan application from the receiver if “it were accompanied by audited financial statements, additional collateral and other information necessary for approval as required in its internal lending guidelines.”
The statement further said that the receiver will not make an additional request since obtaining an external audit of financial
statements will take at least two months to complete with no assurance of the results.
“Instead, this time (two months) will be used to prepare assets for sale and plan a general payout to depositors and other claims,” the statement said.
The statement did not say whether the receiver would secure another loan from another entity.
Udui was not available for comments yesterday.
In early January, the PSB receiver requested a $1.5 million loan from NDBP to pay out its first class depositors.