CDA has $35.6M in loan receivables

CDA comptroller Danny Militante disclosed to Saipan Tribune that the agency’s Development Corporation Division loan program has a total of 60 borrowers on Saipan, Tinian, and Rita.

Of the total amount of receivables, $11.9 million are owed by “active” loan members-those who are paying under the original loan term agreement, which is assigned a 7-percent interest, while $8.254 million are to be collected from members under the CDA’s debt relief program.

The rest of the loans are classified as small business loans.

The debt relief program was designed to help borrowers settle their loans by restructuring the term agreement, assigned at only 2 percent interest.

Militante said that many borrowers have asked CDA to be included in this program due to their inability to pay their obligations. He blamed these borrowers’ delinquency on the economic difficulty that continues to hamper businesses.

He assured that CDA continues to aggressively collect on delinquent borrowers and has been consistent in making follow-ups on each and every one.

CDA also has receivables from court judgments in favor of the agency, amounting to $11.6 million, Militante said.

CDA loan manager Oscar Camacho disclosed the agency’s over $30 million receivables during Wednesday’s meeting of the Saipan Chamber of Commerce at Kanoa Resort in Susupe.

Camacho stated in that meeting that many delinquent borrowers were placed under the agency’s debt relief program to help them.

He also announced that CDA has a list of foreclosed properties that are up for sale. Based on the agency’s website, it is seeking interested buyers, bids, and proposals for purchase or lease of 20 properties.

There is a pending bill at the Legislature, House Bill 17-301, which proposes to suspend CDA loan payments for two years. The legislation was introduced in consideration of the poor economic conditions affecting businesses and the alarming high rate of loan defaults of CDA.

Both Militante and Camacho have opposed the bill, saying it will not only threaten the agency’s existing loans but would also put a moratorium on new loans for two years if no payments to previous loans are received.

CDA is an autonomous agency created by law to assist the public by offering commercial loans to qualified borrowers. It also serves as the government’s economic development arm and financial adviser.

By Moneth Deposa
Reporter