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Retirement Fund denies credit union’s request for refinancing
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Posted on Apr 05 2012
The NMI Retirement Fund has denied the refinancing request of the Commonwealth Government Employees’ Credit Union, which had sought a $500,000 loan.
Saipan Tribune learned that the Fund made the decision after an executive session at its March 8 meeting.
The union had asked the Fund in December 2011 for an additional $500,000 loan on top of its existing loan to be able to expand its services to clients. The requested amount was asked to be assigned a lower interest rate.
The union specifically asked an interest rate of 5 percent for another 30-year term, with $500,000 new funds to be added to the original loan.
But due to the lack of other important details and information about the union’s financial standing, the board deferred taking action on this matter until a decision was reached last month.
Saipan Tribune learned that acting Fund administrator Esther Ada wrote to the union on March 26 about the board’s decision and informed the union about its delinquent payment for the original loan, reflecting seven months past due amounting to $105,000.
Ada confirmed yesterday that she sent the letter to the union.
The union pays the pension agency roughly $10,000 monthly for its original $2 million loan. At present, more than half of the obligation has been fulfilled.
