Toribiong said that the United States weak stock market has contributed to the drop in the Compact funds when in the beginning of the campaign reached $168 million.
Vice President elect Kerai Mariur recently attended the Island government Finance Officers’ Association in Hawaii where the Compact funds was also discussed.Toribiong said beginning Oct. 1 of 2009, Palau will no longer received government subsidy under the compact.He added that on top of the over $13 million government subsidy it receives under the Compact, Palau also can withdraw up to $5 million from the trust fund which they began doing since 2003.Toribiong said by the Year 16 of the Compact, Palau can withdraw up to $15 million from the Trust Fund.He said however that the projection of the Compact fund earnings was supposed to reach $300 million by 2009.“It will be a major challenge for the new government,” Toribiong said.Mariur for his part said Palau has already used up over $8 million of its Fiscal Year 2009 Compact payments.However despite this, Toribiong is confident that the new government can surpass it.“Palau can do it,” Toribiong said.Mariur said the meeting was a forum for the chief financial officers of the insular governments to discuss areas of common concern, identify resource sharing opportunities and develop strategies for improving financial management.He said another issue they have learned from the meeting was not some of the Freely Associated States nations are receiving benefits for the handicapped and a food stamps which Palau who are staying in the United States are not enjoying.
