Diaz bill stated that because of the current global economic crisis and the losses sustained by investments, the withdrawals starting on Oct. 1 should be limited to $10 million.
According to the Compact agreement , Palau will now be allowed to withdraw $15 million from the trust fund which now amounts to over $130 million.“The Olbiil Era Kelulau finds that this level of distribution will decimate the fund’s remaining value and leave little or nothing for future generations of Palauans. Therefore, it is necessary and appropriate for distributions from the Compact of Free Association Trust Fund to be limited by statute to $10 million annually,” the bill said.The bill added that the withdrawal of $10 million will commence on 2011.
