This debt is affecting the seaport’s ability to meet its required debt service ratio, according to CPA Executive Director Efrain F. Camacho.
CPA has to pay CDA approximately $68,000 monthly.
Camacho said CPA’s management met with lawmakers and discussed the agency’s anticipated inability to comply with the seaport bond indenture issue if it will continue to pay its debt to CDA.
CPA originally owed CDA over $40 million, he added.
CPA said it lost some 60 percent of its seaport revenue last fiscal year due to the collapse of Saipan’s garment industry.
Camacho said CPA has yet to meet with CDA’s management.
“We know that CDA has fiduciary duties but we’re hoping some relief can be granted to CPA,” he said.
Last July, CDA expressed its opposition to the write-off proposal and instead recommended the reduction of the interest rate and the suspension of CPA’s payments without any interest charge until the ports authority financially recovers.
