News

Hagatna, Guam - On September 8, 2008, USDA Rural Development State Director
Lorraine Shin and Pacific Islands Development Bank President Aren Palik signed the
documents for a $750,000 loan under the USDA Rural Development’s Intermediary
Relending Program (IRP). As the intermediary bank, PIDB will use the proceeds of the
loan to finance business facilities and community development projects in the western
Pacific island countries, establishing new businesses, expanding existing businesses,
thereby saving jobs and creating new employment opportunities.

At the loan closing ceremony, State Director Lorraine Shin said, "we are very fortunate to
have Pacific Islands Development Bank as our partner. They have proven to be a viable
entity in providing small business loans to the Western Pacific.” She also commended the
staff of its Guam office for their excellent work in assisting PIDB securing the loan.

Joe Diego, Area Director for Rural Development’s west Pacific region said, “USDA
Rural Development values the long-term partnership established with PIDB. Small
businesses in Guam, the Commonwealth of the Northern Mariana Islands, the Federated
States of Micronesia and the Republic of Palau that cannot obtain conventional bank
financing now have another option to consider when addressing the capital needs of their
business.”

Pictured Left to Right: Jeff Jobe, National Business and Cooperative Field Advisor, USDA Rural Development; Joseph M. Diego, Area Director, USDA Rural Development, West Pacific Area; Aren Palik, PIDB President/CEO; Lorraine Shin, State Director, USDA Rural Development; Bernadette Balajadia, Area Specialist, USDA Rural Development; Lourdes M. Perez, PIDB Resident Director; and Aaron Sigrah, PIDB Loan Officer.

Bank President Palik thanked State Director Shin and Area Director Diego and their staff
for their role in making the third loan possible. He said, “we have enjoyed a very good
and professional working relationship with your staff in Guam and Hawaii and I
commend you on your leadership and continued interest in helping small businesses in
the islands.” Palik added, “PIDB will do its very best to make sure that the objective of
the program is achieved and the benefits are realized by small and medium businesses in
the region.” President Palik shared with State Director Shin examples of the successful
projects funded under the IRP program, adding that the additional $750,000 will enable
the bank to expand its program assistance.

Under a highly competitive IRP funding process, PIDB was awarded $500,000 in fiscal
year 2004 and another $750,000 in fiscal year 2006. This is the third loan under the same
source priced at one percent (1%) interest to be repaid in 30 years with a 3-year grace
period. As a condition of approval, PIDB will provide a dollar-for-dollar match to fund
the revolving account to re-lend to businesses in the islands.

PIDB is a regional development bank servicing the financing needs of the people and
businesses in Guam, Palau, Commonwealth of the Northern Mariana Islands, and the
FSM States of Yap, Chuuk, Pohnpei, and Kosrae. Its mission is to contribute to the
acceleration of economic and social development of member States and nations and to
promote regional cooperation. Further information on the bank and its programs is
available at our office in Guam or by visiting PIDB's web site at www.pacificidb.com.
Pacific Islands Development Bank is an Equal Opportunity Lender, Provider, and
Employer.

The Board of Governors of the Pacific Islands Development Bank convened its annual meeting at the Palau Royal Resort in Palau on April 28, 2008.

Among the key agenda items in the meeting were the reviews of the Bank´s 2007 Annual Report including its 2007 audited financial statements and the Bank´s 2008 Budget and Goals. Bank President/CEO Aren Palik reported to the Board that 2007 was a record setting year with a 22% loan growth and 13% growth in total assets. The Bank also recorded the highest net earnings since its inception, effectively eliminating its retained deficit. President Palik also reported that the quality of its loan assets has improved substantially with a 0.89% delinquency and further increased its allowance for loan loss reserve. Equally important, the Bank again had a clean audit with an “unqualified” opinion. “Although we had the best year by far in 2007, we still need to do more to help our member countries and States in developing their respective economies”, Palik said. He added, “we need to continue working on our growth related initiatives and strategies outlined in our Strategic Plan to support our funding programs and services.”

Pictured L-R Backrow: Senator Ilai Abraham from Kosrae, Governor Robert Weilbacher from Kosrae, Governor Sebastian Anefal from Yap; Middle Row: Newly elected Board Chairman, Lt. Governor Timothy Villagomez from CNMI, Congressman Diego Benavente from the CNMI, former Lt. Governor Jack Yakana from Pohnpei, Minister of Finance Elbuchel Sadang from Palau; Front Row: Minister of Finance Jack Ading (observer) from the RMI, Speaker Judi Won Pat from Guam, President of PIDB, Aren Palik, Director of Administration Lourdes Perez from Guam, PIDB Administrative Manager Rosa D.L.S Weilbacher, and Senator John Masiwemai (proxy for Speaker Charles Chieng from Yap). © PIDB 2008

In this meeting, the Board also adopted three Resolutions, one of which invites the Republic of the Marshall Islands to join the Pacific Islands Development Bank as a member. The Board acknowledged and welcomed the Honorable Jack Ading, Minister of Finance of the Republic of the Marshall Islands, who attended the meeting as an observer. This was the first time RMI has participated in a PIDB board meeting and there was high hope that it will finally join the Bank.

President Palik updated the Board regarding membership capital and efforts to secure new members, particularly Marshall Islands, American Samoa and Kiribati. Given its growth and expanded role in the region, the Board authorized Management to review the prospect of the Bank owning its own building either through direct purchase or new construction.

The Board reorganized at the end of the meeting, electing Lt. Governor Timothy Villagomez of CNMI as the new Chairman, Governor Sebastian Anefal of Yap as Vice Chairman, and Minster Elbuchel Sadang of Palau as Secretary. Chairman Villagomez thanked his colleagues for electing him as the new Chairman and assured them that he will do his best to carry out his duty and to move the Bank forward.

The Board selected Saipan as its next meeting venue tentatively scheduled for April 2009.