The board agreed to form a four-member task force whose main goal is to identify and pursue various funding and capitalization sources.
“PIDB plays a significant and expanding role in promoting and facilitating the economic development of our island communities,” said the board chairman, Guam Gov. Felix Camacho.
“We need to secure the necessary resources the bank needs in order to carry out its mission and purpose and forming the task force is timely,” the governor said.
Aren Palik, bank president and CEO, said the bank has been undercapitalized since its inception and cautioned that securing additional capitalization and funding will not be an easy task.
“With the ongoing global recession and the economic and financial challenges faced by many industrialized countries, securing additional capital especially through soft loans will not be easy.”
Palik said the task force will work diligently and collaborate with member governments and development partners in pursuing funding from both public and private sources.
Kosrae Gov. Robert Weilbacher reported that Kosrae has made another purchase of capital stock worth $50,000. This increases Kosrae’s total contributed capital in the bank to $700,000.
Member island states Yap, Palau, Guam, Pohnpei, and the CNMI have already completed the required membership equity capital of $1 million. Chuuk state has contributed $251,000.
The board approved the final terms and conditions of a loan facility between PIDB and FSM Development Bank and discussed the status of Marshall Islands membership in the bank, expressing hope that it will soon join the bank with its first membership installment payment.
