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Colonia, Yap - The Board of Governors of the Pacific Islands Development Bank (PIDB) held its annual meeting in Yap on February 28, 2011. Board Chairman and Governor of Yap State, Sebastian Anefal, called the meeting to order, welcomed everyone to Yap with special recognition to new Board members including Speaker Judith Won Pat representing Guam Legislature, Speaker Henry Falan representing Yap State Legislature, Speaker Lyndon Abraham representing Kosrae State Legislature, and Lt. Governor Carson Sigrah representing Kosrae State Executive Branch.

Major items included in the meeting agenda include review of the Bank’s 2010 operational results and performance and its 2010 independent audit report, review of the bank’s 2011 Budget and Goals, and the Bank’s capitalization and capacity which is vital to its core activity of lending.

Sitting (from left): Speaker Henry Falan of Yap, Vice President of Palau & Board Secretary Kerai Mariur, Yap Governor and Board Chairman Sebastian Anefal, Pohnpei Governor & Board Vice Chairman John Ehsa, and Kosrae Lt. Governor Carson Sigrah Standing (from left): Speaker Lyndon Abraham of Kosrae, Bank President/CEO Aren Palik, CNMI Congressman Diego Benavente, Palau Delegate Secilil Eldebechel, Guam Speaker Judith Won Pat, PIDB Manager for Administration, Rosa D.L.S Weilbacher, and Pohnpei Director of Treasury & Administration.

Aren Palik, Bank President & CEO, presented the Bank’s 2010 operational results and performance with a summary highlighting a 9% growth in Total Assets, 12% growth in Loans, 1.5% Return on Assets, 3% growth in Stockholders’ Equity, and a strong asset (loan) quality with a 1.8% delinquency ratio and zero loan charge offs for the year. The Bank has consistently held its delinquency ratio below 3% over the past five years. He also reported that the Bank had a clean audit with an unqualified audit opinion.

Palik said, "we have been successful in restructuring our balance sheet and position the Bank for continued and sustained growth while strengthening our earnings capacity, but we are far from fulfilling the Bank’s mission and purpose." He added that the Bank has seen an increasing demand for its products and services against limited capital and loan able funds. Board Chairman Anefal said, "in order for PIDB to forge a greater and lasting impact on the development of our member islands, PIDB must increase its capitalization and capacity". The Board last year created a task force whose primary task is to work on the Bank’s capitalization and funding. In this meeting, the Board reviewed the activities and progress of the Task Force. The Bank’s 2011 Budget and Goals projects significant increases in loan activities including implementation of a Student Loan Program and expansion of its ongoing scholarship program.

While the structure of PIDB remains the same, four new members representing Guam, Yap, and Kosrae were introduced in the meeting. The Board also approved the nomination of former Kosrae Senator Ilai Abraham to represent Kosrae on the Bank’s Board of Directors, replacing Senator Gibson Siba. The Board passed a number of Resolutions expressing sincere gratitude and appreciation to outgoing board members.

Prior to adjournment, the Board elected Governor John Ehsa of Pohnpei as Chairman, Vice President Kerai Mariur of Palau as Vice President, and left the Secretary position to be filled by one of the members from CNMI. Incoming Chairman Ehsa said, "I thanked all of you for electing me to take over this challenging job, and I will do my best to continue the excellent work and leadership of Governor Anefal". The Board selected Kosrae State as venue for its next annual board meeting. For information about Pacific Islands Development Bank, you may visit www.pacificidb.com.

The Pacific Islands Development Bank (PIDB) Board of Governors held a special meeting in Palau on Friday, July 30, primarily to review and address the bank’s capacity and resource base, vital to its growth and expansion strategy. While the bank has consistently grown in total assets and loan balances in the past five years, increasing its financial resources and capacity remains one of its immediate and highest priorities. The Board, recognizing that need, formed a four-member special Task Force whose main task and objective 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 Gov. Felix Camacho, Chairman of the PIDB Board of Governors. He added that "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". Aren Palik, Bank President & CEO, indicated that 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 added, &quo;the Task Force will work diligently and collaborate with our member governments and development partners as we pursue funding from both public and private sources".

Governor Robert Weilbacher of Kosrae reported in the meeting 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. Yap, Palau, Guam, Pohnpei, and Commonwealth of the Northern Mariana Islands have already completed its required membership equity capital of $1 million. Chuuk State has contributed $251,000. Chairman Camacho thanked Governor Weilbacher for Kosrae’s continued commitment, especially in these difficult times.

The Board also 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 RMI will soon join the bank with its first membership installment payment. The Board, before adjourning, also elected the following new Officers: Governor Sebastian Anefal of Yap, Chairman, Governor John Ehsa of Pohnpei, Vice Chairman, and Vice President and Minister of Finance Kerai Mariur of Palau, Secretary. Outgoing Chairman Camacho thanked members for their support, adding that it has truly been an honor to serve as Chairman of the Board.

Sitting (from left): Governor John Ehsa (Vice Chairman), Governor Felix Camacho (Chairman), Governor Benigno Fitial, Governor Kerai Mariur (Secretary), Governor Robert Weilbacher, Governor Sebastian Anefal.

Standing (from left): Governor Charles Chieng, Governor/Director Secilil Eldebechel, Director Lourdes Perez, Bank President and Board of Directors Chairman Aren Palik, Speaker Judy Won Pat (proxy for Governor Ben Pangelinan), Governor Ilai Abraham, Governor/Director Thomas Pablo, Governor/Director Diego Benavente, Director Micahel Gaan.

Two days earlier, the bank’s Board of Directors also held its regular meeting and to facilitate the Board of Governors meeting. Among others, the Board reviewed its 2nd quarter operational performance, investment report, adequacy of allowance for loan loss reserve, and took action on commercial loan requests. The seven-member board is chaired by the Bank’s President and CEO.

Pacific Islands Development Bank (PIDB) is a regional development finance institution, created by the Association of Pacific Island Legislatures (APIL), to assist and contribute to the economic and social development of its member nations and States, individually and collectively, and to promote economic cooperation among them. Current members of the bank include the Republic of Palau, Island of Guam, Commonwealth of the Northern Mariana Islands, and the FSM States of Yap, Chuuk, Pohnpei, and Kosrae. It’s corporate office is located in Guam. To learn more about the bank and its products and services, visit www.pacificidb.com.