Speaker Sabino Anastacio has urged the Senate to adopt the House Joint Resolution that supports the approval of the $20 million loan to the National Development Bank ( NDBP), which he said is in limbo because a committee in the Senate “ intends not to adopt” the resolution.
In a February 8 letter to the Senate President Hokkons Baules, the speaker said the Senate Committee on Banking, Insurance, and other Financial Matters, chaired by Senator Seciil Elbedechel “has made intentions clear,” that the resolution is not being endorsed because the NDBP has enough capital to service their loan demands.
However, Speaker said the NDBP is in need of capital infusion and it is short in the funding of almost $10 million for borrowers who wanted to loan money.
“NDBP loans for housing, businesses, and other projects are vital for economic and social development in the Republic of Palau,” he said.
The Senate committee said that it is putting on hold the adoption of the resolution because it is not yet a good idea to borrow money.
The committee also said that it is waiting for the Executive Branch which suggested waiting for the option of borrowing money from Saudi Arabia for a lower interest rate.
Anastacio however said on the contrary, President Surangel Whipps Jr. has supported the resolution and that the committee has no reason not to adopt it.
Anastacio said failure to adopt the resolution will result in families suffering and will “negatively impact the economy.”