KOROR, Palau — The process of securing a $5 million soft loan for the Koror State Government reached its conclusion on Jan. 6, 2025, with a formal signing ceremony at the Satellite Office of the President in Meyuns. Minister of Finance Kaleb Udui Jr. and Koror State Gov. Eyos Rudimch finalized the agreement in the presence of President Surangel S. Whipps Jr.
The loan, designed to support Koror State’s operations for fiscal years 2025 and 2026, is part of a broader $10 million allocation approved under Senate Joint Resolution No. 11-55. The resolution cleared the Senate on Dec. 23, 2024, and the House of Delegates on Dec. 24, 2024.
Gov. Rudimch expressed gratitude to President Whipps, the Ministry of Finance, the Asian Development Bank (ADB), and the Olbiil Era Kelulau (OEK) for their collaborative efforts in addressing Koror’s financial needs.
“This partnership ensures the stability of our operations and services for the coming years,” Rudimch said during the event.
The funds originate from a $12.5 million policy-based loan secured by Minister Udui with the ADB on May 29, 2024. The loan, offered at a favorable fixed interest rate of 1%, was part of Palau’s efforts to foster sustainable and inclusive economic recovery in the wake of the COVID-19 pandemic.
The culmination of this agreement results from five years of efforts by the Koror State government and the national government to secure financial support for its financial sustainability and operational efficiency. (By: L.N. Reklai)