Palau to ask for full drawdown
With passage of U.S. 2018 Omnibus Funding Agreement which included funds for Palau’s Review Agreement, President Tommy Remengesau, Jr. says he will need both countries to meet to discuss the funds disbursement.
President Remengesau in his meeting with national leadership yesterday says they plan to request the drawdown of the entire amount rather than getting the yearly payments until year 2024. Couple of the reasons mentioned include inflation factor and the stated interest rate of 12% that COFA investment was supposed to earn annually but have never reached.
Remengesau said that Palau have demonstrated prudent investment and use of its funds and that it should be able to take that money and invest it like it did with its current COFA Trust Fund.
Compact Review Agreement funding was signed and approved in 2010 by previous U.S. Administration but U.S. Congress did not fund it until now, 8 years later. The original amount was for $229 million but U.S. Department of Interior had provided annual funding through its discretionary funds of $13.1 million each year since to a total of $105.1 million. Funds approved is for $123.9 million. (L.N. Reklai/Editor)