isic physical and ients necessary for by expanding a nde construction cludes rehabilitat- yads, airports, and nd improving and 2lectrical, sanitary, lities. e of $225,000 was applicants attempt to secure cred } di! aggr ditional | ia be unegat process in the districts. directly from commercial banksin ¥ | area, and that only when such assigm ow! g, ance is not available may they subng.); -¢ 30 direct loans outstandin y-eight were applications to the Board for its cq Stes luni! . 531,963, twent na Islands Maria the in 17 nt. finque @ ly, sideration. Loans are made direct tated by devas was which .,... tofM.. ntee guara loan in the form of a commercial bank by the TerritonfA. 4) von Jean in April. After the y was made of estiwith the Board settigg Fan , surve Government, reserv of the Marianas cmg needs rnan eel ze e equivalent to 25 aside cash in “ busitiess community. Loan applica- ynesians to estabisiness enterprises n with necessary ‘e and long-term terprises include of the total loan guaranteed. ‘xpanded produc- Trust Territory, or a group or associ uction in modern residents, whom the Board of Diredigetis is of the Economic Development tors regards as a suitable borrower. ,§ yan Lundsince 1964: ooperatives, small aft, search for ‘tion. al participation in rises which are d the financial nvestors, by pro- i Hons known to be in Be in addition to joans cts. distri other in c ro of ent resid (a) A citizen or tion of Trust Territory citizens & the following figures reflect the a (b) Corporations and cooperatiy€, wel societies authorized to conduct bug Yeur ness in the Territory; citizens or regg dents of the Territory engaged @ 1904 ic climate which agriculture, while providing yment opportumnesia’s growing yrises which may icipation include sportation and ism; and improvement ofreal proper 196 / heries, large-scale ral production, and other fabri‘turing industries. ‘velopment Loan ‘tant device for economy. The tered by a sevenirectors, chaired onomic Developablished by the quires that loan manufacturing, or cong.J90> mercial fishing; improvement of toug1000 for industrial purposes which te 0% Board specifically determines to @ Guaranteed Loans Direct Loans 5 200,000 $104,000 193,700 285,700 68,600 203,398 39,625 236,000 164,200 115,300 beneficial, desirable and necessary the economic development of te These loans were granted for a variety Trust Territory and which meets ongOF purposes: or more of the following criteria: —Creates new employemnt; 4 t b ce s, commerce and toliling about $500,000 were restoring and Loans may be made or guarantesfe,.dered likely for ents. These would lishm di estab per to: —Replaces imports,increases exports 1k —Reduces consumerprices; @® Jo .tmulate agricultural production (for example, to establish poultry Lunus, piggeries, vegetable farms, cattle ranches) ifPe@ |. cstublish new enterprises (such —Provides vitally needed facilities ang services. if a. laundromat, boat yard, bakeries, iiting operations) } @ | provide additional capital for During the year under revieve cxpanding private businesses and Cooperatives direct loans totaling $115,300 made and $164,200 worth of add tional loans were guaranteed wit commercial banks. At year’s eng $23,000 in loans were pending and a Part VI—Economic Advancemet @ |. tinance (cuumercial new construction buildings, totels. and rental property) motels, e To engage in transportation services (e.g., local transportation, warehouses, sea transportation, stevedoring). Credit Unions and Cooperatives. Trust Territory credit unions and cooperatives continue to make notable progress. By the end of fiscal year 1968, 48 credit unions were operating in the Territory, an increase of seven over the previous period. Total assets of these self-help thrift and lending institutions aggregated $879,778, an increase of 62% during calendar year 1967. By the end of the reporting period, total assets were estimated to be above $1,000,000. At the end of calendar year 1967, 7,295 Micronesians were participating in credit unions and had saved $764,485 for an average of $105 per member. During calendar year 1967, credit unions made 4,059 loans to members amounting to $1,208,846 or an average of $298 per loan. In most cases, the credit union is the only source for such loans. Loans were made for such beneficial purposes as home building and improvement, buying furniture and household appliances, sending children away to school, and a number of other practical purposes. By the end offiscal year 1968, 14 Trust Territory credit unions had subscribed for the Loan Protection and Life Savings insurance provided by CUNA Mutual Insurance Society of Madison, Wisconsin. Under the loan protection coverage, the insurance company will repay the balance of a member’s credit union loan if he dies or becomes totally and permanently disabled. Thus, the credit union will not lose, nor will it have to call upon the family of the deceased member to pay the obligation. The insurance company does not seek recovery of the amountit restitutes to the credit union. 4$ bet Your 1968 **%