Peale ee Meecd
physical and
'$ necessary for
y expanding a
construction
des rehabilitat8, airports, and
improving and
‘trical, sanitary,
28,
sians to estab-
ess enterprises
applicants attempt to secure credit. jdditional aggregate of $225,000 was
directly from commercial banks in the — known to be in process in the districts.
area, and that only when such assist. *
ance is not available may they submit.
Of the 50 direct loans outstanding,
applications to the Board for its con-* totaling $531,963, twenty-eight were
sideration. Loans are madedirectly, or
in the form of a loan guarantee to a
delinquent, 17 in the Mariana Islands
District which was devastated by
Typhoon Jean in April. After the
Government, with the Board setting {yphoon a survey was made ofestiaside cash in reserve equivalent to 25% mated financing needs of the Marianas
of the total loan guaranteed.
business community. Loan applicacommercial bank by the Territorial
vith necessary
Loans may be made or guaranteed
7
tions totaling about $500,000 were
considered likely for restoring and
and long-term
to:
yeratives, small
(a) A citizen or resident of the process in other districts.
Trust Territory, or a group or assOCia-_
tion of Trust Territory citizens or
The following figures reflect the
residents, whom the Board of Direc. activity of the Economic Development
tors regards as a suitable borrower.
Loan Fund since 1964:
upgrading establishments. These would
be in addition to loans known to be in
articipation in
3 which are
the financial
stors, by pro-
climate which
ommerce and
ule providing
ent opportu‘ia’s growing
23 which may
ation include
rtation
and
es, large-scale
production,
other fabriing industries.
(6b) Corporations and cooperative
societies authorized to conduct business in the Territory; citizens or residents of the Territory engaged in
agriculture, manufacturing, or com-
mercial fishing; improvement of tour-
ite
anded producsearch for
ton in modern
n.
at
include
ae ae
Irises
onomy. The
:d by a seventors, chaired
mic Developshed by the
‘es that loan
Direct
Loans
Guaranteed
Loans
1964
1908
1966
1907
1968
$200,000
68,600
203,398
193,700
115,300
$104,000
39,625
236,000
285,700
164,200
ism; and improvement ofreal property
for industrial purposes which the
Board specifically determines to be;
beneficial, desirable and necessary to:
the economic development of the: ‘These loans were granted for a variety
Trust Territory and which meets one:
or moreof the followingcriteria:
—Creates new employemnt;
—Replaces imports, increases exports;
pment Loan
t device for
fetscal
Year
—Reduces consumerprices;
—Provides vitally needed facilities and:
SeTVices.
During the year under review,B
direct loans totaling $115,300 were
made and $164,200 worth of addi§
tional loans were guaranteed with;
commercial banks. At year’s end,?
$23,000 in loans were pending and an®
Part VI—Economic Advancement ©
of purposes:
e lo stimulate agricultural production
(for example, to establish poultry
farms. piggeries, vegetable farms,
cattle ranches)
To establish new enterprises (such
as laundromat, boat yard, bakeries,
lishing operations)
@ lo provide additional capital for
expanding private businesses and
cooperatives
e To
finance
{commercial
new
construction
buildings,
hotels, and rental property)
biscal Year 1968
motels,
eT
Bi iste ke hd ma, ~ Mle cl
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 amount it restitutes to the credit
union.
45
a I A me mm mm mm ate reemin coees ee eer
eraey