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Fund defers action on credit union’s refinancing request
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Posted on Feb 01 2012
The NMI Retirement Fund board deferred any action on the refinancing request of the Commonwealth Government Employees’ Credit Union during its meeting Friday.
The board put off any decision on the matter after learning that there has been no further development since the credit union made its request to the Fund.
Fund board chair Sixto K. Igisomar said the deferment was reached after consulting with their legal counsel. Igisomar turned over the matter to administrator Richard Villagomez and his deputy, Esther Ada, to work with the credit union.
The Fund loaned the union $2 million in 1996.
The union recently asked the Fund for a refinancing package—an additional $500,000 loan at a lower interest rate—to be able to expand and continue its services to its clients. The union cited revenue losses it incurred as the reason for its request.
Due to the lack of details and more information about the union’s financial standing, the board had instructed the Fund’s management to conduct an analysis before any action is taken on the matter. The board recorded no further development on this issue as no meetings have taken place between parties since the first board instruction.
Fund officials earlier disclosed that the credit union has been diligently paying its monthly obligation for the $2 million loan and it was not until recently that it fell behind in its payments due to a significant drop in its revenue. The credit union did not disclose its revenue losses in its Dec. 15 letter to the Fund.
The union pays roughly $10,000 a month to the Fund. More than half of the obligation has been paid.
