He expects that more aggressive efforts will result in monthly collections of $335,000.
“If we look at the collections now, we usually go up depending on the months,” he told the board. “Sometimes we go as low as $50,000 per month…but as a result of auctions and aggressive collections we can go up as high as $335,000.”
But Camacho said CDA has to “show more efforts” on Tinian and Rota.
“Our collection could go higher…if we again focus on Rota and Tinian,” he said. “Our goal is to increase collection from at least $3,000 from both islands,” he said.
Camacho asked the assistance of the board members from Rota and Tinian to help in CDA’s “aggressive collection efforts.”
CDA’s collection efforts are expected to improve its delinquent loan ratio.
Variety learned that as of Dec. 31, 2007, about 63 percent of CDA’s direct loans were delinquent translating to $15.76 million in loans that were in default.
The figure did not include other outstanding balances involving the debt relief program, judgments, bankruptcies, buybacks, and matured loans. If these were factored into the equation, the delinquency rate would be 80 percent.
CDA loaned out a total of $36.275 million by the end of December last year. Of its 194 borrowers, 179 were delinquent.
As of Nov. 2007, 30 borrowers with outstanding balances and accrued interests totaling some $13 million had been brought to court.
According to Camacho, the Development Corporation Division had $1.2 million in available funds for qualified borrowers as of Aug. 31 this year.
