“Instead of writing off,” CDA Chairman Pedro Itibus told Variety, “we recommend a reduction of the interest rate for CPA and a suspension of their payment without any interest charged in a specific period of time. Those are the only ways we can provide assistance to them — but not writing off their debt.”
CPA remits $68,000 in monthly debt payment to CDA.
CPA said it is seeking a debt write-off due to the 60 percent reduction in the Saipan port’s revenue.
CDA has already sent its counter-proposal to CPA, Itibus said.
“We’re giving CPA a break at least for a certain period of time until such time they can recover,” he added. “But the request to waive their debt is something CDA cannot accommodate.”
Under the CDA proposal, it will require a regular meeting with CPA to review the ports authority’s financial status.
“If it looks that things are getting better at CPA, we may ask them to continue the payment and negotiate the interest rate that will work for them,” Itibus said.
In an earlier interview, outgoing CPA Executive Director Lee Cabrera said the write-off proposal was submitted to the Legislature.
According to House Committee on Commerce and Tourism Chairman Joseph C. Reyes, R-Saipan, the draft legislation has not reached his panel.
However, he added, he opposes the debt write-off idea.
“I don’t think this is the appropriate thing to do,” Reyes said. “The government has to do something instead of just forgiving debts. You’re only further hurting the people.”
Reyes said what CDA loans out to its borrowers are taxpayers’ money and the agency is accountable to the people.
“This money belongs to the people,” he added, “What CDA is proposing to CPA, is perhaps the better option.”
