CDA shifts focus to providing clients with technical assistance

The Commonwealth Development Authority has sealed a partnership agreement with the Pacific Business Center of the University of Hawaii in fresh efforts to develop the agency’s technical expertise in helping local businesses cope with hard economic times.

Executive Director Marylou S. Ada said CDA’s tie-up with the Pacific Business Center allows the CNMI government-controlled lending agency to provide technical and advisory assistance to its private sector clients.

“Assistance is provided by the CDA in the development of business plans, feasibility studies and loan packages,” Ms. Ada said, adding that CDA is taking advantage of several programs offered by the Center.

The Pacific Business Center also offers training and workshops on various business areas. Through such programs, CDA is able to develop technical expertise in business and financial management, said Ms. Ada.

CDA has launched a program aimed at educating its clients on ways to become better borrowers, underscoring the importance of a good credit history in their future loan applications.

This has been complemented by a counseling program, also initiated by the development authority, to halt the rising number of delinquent borrowers and non-performing loans which soared to 15 percent during the first quarter of the year.

The development authority is mobilizing its credit and business experts to visit CDA clients who may be needing technical or professional assistance, especially on their ability to keep their investments afloat and continue paying their outstanding loans with the agency.

“We do on-site visit. In conjunction with that, we step in and see if the borrowers need technical or marketing assistance, as well as financial guidance, or whether an additional loan is needed to keep their businesses going,” Ms. Ada said.

These programs have been instituted by the lending agency in order to prevent more foreclosures of properties since this process is not a very prudent practice especially since majority of CDA’s clients use land titles as loan mortgages.

Mr. Ada stressed the lending agency has been giving financial, technical and advisory assistance to the private sector, as well as assist in the identification, formulation and promotion of new projects in order to help keep the CNMI economy afloat.