By Nazario Rodriguez Jr.
Horizon news staff

The National Development Bank of Palau (NDBP) is requesting for a Joint Resolution from both houses of Congress to approve, authorize and ratify the President’s authority that would guarantee a loan from the European Investment Bank (EIB) amounting to five million Euro or equivalent to $6,800,500.
The NDBP said that this loan is not only vital for the bank to grow but also important to support private sectors and personal housing needs for the Palauan people.
The loan will have an interest rate of 6.178 percent for 15 years term with a grace period of three years.
The NDBP told the OEK that the bank is financially sound and has the ability to meet the repayment of this loan including its existing borrowings.
A copy of the 48-page finance contract and the Guarantee and Indemnity Agreement between the NDBP and EIB requiring a support and backing of Palau’s full faith and credit was also provided to the Olbiil Era Kelulau.
In his letter to Speaker Antonio Bells and Senate President Surangel Whipps Sr. on May 1, NDBP Acting President Ulai Teltul noted that the finance contract has been approved in December 2006 under the Financing Facility II and has been awaiting a guarantee of the Republic of Palau.
The NDBP said that the purpose of the loan is to bring additional funding for NDBP to finance all sectors of economy through its loan programs available including housing.
"The Bank’s funding from the borrowing with Republic of Palau Social Security Administration and International Commercial Bank of China are near to full use," the NDBP said.
It said that this meant that the NDBP loaned these funds to the local economy, thus, the need to bring additional funding to support private sectors and personal housing needs of the people of Palau is a very important and vital for the Bank to grow.