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Lady Kimberly amenable to local loan
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Posted on Oct 21 2005
Seattle-based commercial fishing group, Lady Kimberly, would settle for a loan in the CNMI if taking a bank loan guarantee for an off-island financial institution is prohibited by local regulations, according to the Department of Commerce.
“Lady Kimberly is agreeable to that. It’s fine with them,” said Commerce economic development officer Glenn Manglona in an interview.
The Commonwealth Development Authority, which currently reviews the bank loan application of Kimberly for $600,000, earlier said that no such guarantee is given for an off-island bank.
CDA board chairman Tom Glen Quitugua cited that CNMI rules and regulations only limit bank guarantees to local banks.
“We can issue bank guarantee but it would have to be in the local bank. CDA does not engage in U.S. mainland banks,” he had said.
Lady Kimberly loan guarantee application covers 30 percent of its proposed investment in the fishing business.
The company’s proposal also calls for a 30 percent equity ownership from the local fishing association in the CNMI.
The company would use two commercial fishing vessels and set up a processing plant on Saipan.
The Commerce department said it welcomes Lady Kimberly and hopes that it can set up its business soon.
Commercial fishing is an alternative industry for the CNMI, it said.
