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Island Times – KOROR, Palau — Koror State is finally set to receive a loan from the national government to help fund its annual budget, ending nearly three years of requests.
Minister Kaleb Udui Jr. confirmed last week that paperwork is nearing completion, with signing and disbursement expected in May. The national government will secure a loan from the Asian Development Bank, allocating a portion to Koror.
Udui explained that approval took time due to extensive paperwork requirements from both governments. “I’ll formally update the governor on this expectation. “We can’t confirm funding until the national government’s loan is signed.”
Despite the delay, Udui expressed confidence in Koror’s short-term financial stability.
State coffers have been hit hard by the COVID-19 pandemic’s collapse of Palau’s tourism industry. Koror has withdrawn roughly $3 million annually from its Reserve Funds to supplement the budget. These reserves will be depleted by 2025 if current withdrawal levels continue.
The loan amount remains undisclosed, but Udui indicated it will cover 2024 and 2025. Last year, the House of Delegates proposed a $15 million loan, later reduced to $10 million.
The Palau National Constitution allows state loans with legislative approval.
Source : https://islandtimes.org/koror-state-secures-loan-to-bolster-budget-after-years-of-delays/