Tim elected new chair of PIDB

Lt. Gov. Timothy Villagomez has been elected chairman of the Board of Governors of the Pacific Islands Development Bank at the conclusion of its annual meeting held in Palau last April 28.

Others elected were Gov. Sebastian Anefal of Yap as vice chairman and Minister Elbuchel Sadang of Palau as secretary.

Villagomez thanked his colleagues for electing him as the new chairman and assured them that he will do his best to carry out his duty and to move PIDB forward.

The PIDB board also selected Saipan as its next meeting venue, tentatively scheduled for April 2009.

PIDB’s annual meeting was held at the Palau Royal Resort and among the key agenda items in the meeting were the reviews of the bank’s 2007 annual report, including its 2007 audited financial statements and PIDB’s 2008 budget and goals.

Bank president and CEO Aren Palik reported to the board that 2007 was a record-setting year with a 22-percent loan growth and 13 percent growth in total assets.

The bank also recorded the highest net earnings since its inception, effectively eliminating its retained deficit.

Palik also reported that the quality of its loan assets has improved substantially with a 0.89 percent delinquency and further increased its allowance for loan loss reserve. Equally important, the bank again had a clean audit with an “unqualified” opinion.

“Although we had the best year by far in 2007, we still need to do more to help our member countries and states in developing their respective economies”, Palik said.

He added, “we need to continue working on our growth related initiatives and strategies outlined in our Strategic Plan to support our funding programs and services.”

In this meeting, the board also adopted three resolutions, one of which invites the Republic of the Marshall Islands to join the PIDB as a member.

The board acknowledged and welcomed the Jack Ading, Minister of Finance of the Republic of the Marshall Islands, who attended the meeting as an observer. This was the first time RMI had participated in a PIDB board meeting and there was high hope that it will finally join the bank.

Palik also updated the board regarding membership capital and efforts to secure new members, particularly Marshall Islands, American Samoa, and Kiribati.

Given its growth and expanded role in the region, the board authorized management to review the prospect of the bank owning its own building either through direct purchase or new construction. (PIDB)