Fund Administration

As a development finance institution, PIDB may administer loan funds for various governments in the region. Under this program, PIDB will perform the entire lending function from loan application to approval, disbursement, and collection. Loans will be approved based on a set of guidelines agreed to between PIDB and the member government. The cost of administering the loan program will be covered through interest earned on loans funded under the program. This is a common function and role of a development Bank.

Any and all PIDB member governments are encouraged to consider transferring loan programs and funds for administration by PIDB. This provides an option for the member governments in extending services to their businesses and in ensuring that the programs and funds are maximized and operated professionally.

Procedures:

• The members of the Board of Directors and Board of Governors will consult with the leadership of member governments on possible funds or programs that may be transferred to PIDB for administration.
• The PIDB President, on behalf of the Board, works directly with the leadership of the respective government on the procedure and requirements.
• A Service Agreement is negotiated and executed between PIDB and the fund owner.
• The agreement and program is implemented.