KOROR (Palau Horizon) — President Tommy Remengesau has signed a bilateral agreement that could help Palau secure more loans and finance local projects with private investors as partners.
Remengesau said after he signed the bilateral agreement with Overseas Private Investment Corp. during his recent trip in Washington, a group of investors had already shown interest in investing in Palau.
The president said investors from Hawaii had already submitted their applications.
OPIC is a U.S. agency that assists American investors through loans and loan guarantees.
Direct loans from OPIC can amount from $2 million to $10 million while loan guarantees used for larger projects could go as high as $250 million.
Small and large projects could get OPIC financing through direct loans and loan guarantees.
Remengesau said OPIC will finance ventures between American and Palauan investors.
Under the agreement, OPIC could help Palau diversify its loan sources and provide options to local businessmen concerning loans to finance their ventures.
Remengesau said through OPIC Palau can maintain greater control over its economic expansion.
The corporation also participates in up to 50 percent of the total costs of a new venture and could be involved in a higher participation if successful existing businesses want to expand.
