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CDA seeks to lower its loan delinquency rate by 50 pct.
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Posted on Mar 05 2009
The Commonwealth Development Authority hopes to pare down its current loan delinquency rate by 50 percent through extensive collection efforts.
CDA board chair Pete Itibus yesterday disclosed that CDA’s current delinquent rate is 86 percent, which he described as “alarming.”
“The delinquency rate is about 86 percent. The board believes that we can go down below 50 percent…and that’s our target,” he said.
With the appointment of new executive director Manuel Sablan, also a former board member of the agency, the chairman said they’re looking forward to the enforcement of more effective collection efforts.
Once the target 50 percent is achieved, “that would be a great accomplishment,” Itibus said.
“We will ask recommendations from the new executive director as to how we can further improve our programs and operation. We’re open to his ideas, especially in terms of improving relationship with our clients,” Itibus said.
The chairman said that
Although the board recognizes the difficult times and challenges facing businesses on island, Itibus said the existing interest rate for borrowers is still “workable at this time.”
CDA earlier disclosed that majority of its loan borrowers are delinquent in their dues and obligations, noting that the 86-percent delinquent rate was reported in June 2008.
The agency has a total of 79 borrowers, not including guarantees of which 68 are considered delinquent in paying their obligation in a given period of time set by CDA.
As of June 2008, the agency has a total outstanding loan balance of $16.6 million.
Previous records of the agency also showed that of the 79 borrowers, 64 have matured loans amounting to $4.3 million during the same period in 2008.
CDA then recorded $9.7 million in delinquent cash value, which translates to 58 percent, excluding guarantees.
