NDBP President Kaleb Udui that most loans obtained from the bank is either for expansion or buying out other businesses and not so much on establishing new companies.
He said loans to buy out businesses are better than closing shop which will not be good for the country’s economy.
Udui however said that although a lawsuit is a last resort, they put pressure on lenders to pay their loans.
He said that the economy is slow right now because of a worldwide increase in oil prices and salaries are not increasing.
Udui said that though they gave out a $3 million loan this year, it is not an indication of a busy economy.
He said the loan was given to Palau Public Utilities Corporation to purchase new generators but not to build new businesses.
Housing loans increased but at a slower phase, Udui said.
