Government of the Federated States of Micronesia

Asian Development Bank (ADB) Mission to FSM

PALIKIR, Pohnpei (FSM Information Service): February 27, 1998 - A mission from the Asian Development Bank (ADB) to be headed by Mr. Steven Pollard is scheduled to visit the FSM early part of March, to review progress of the Public Sector Reform Program, according to President Jacob Nena's February 19th Communication to the FSM State Governors.

Pollard will be in Pohnpei from March 14th through the 18th, President Nena communicated to Pohnpei Governor Del Pangelinan, to see whether sufficient progress has been achieved to release the second tranche drawdown of the ADB loan for the Early Retirement Program.

The February 19th communication stated that ADB requires the national government together with at least two state governments must have met the major conditions before any further funds may be released to the national government.

The major conditions are:

  1. Achievement of the early retirement schedule (ERS) targets;
  2. Enactment of the Foreign Investment Act;
  3. Enactment of the National Government Customs Law and amendment of Gross Revenue Tax Law to exempt exports from tax.

Nena further added that there is general condition that sufficient progress should have been met relative to the established policy matrices with which EMPAT will be assisting the states.

President Nena also stated that during this visit, Pollard would like also discuss the ADB's country economic strategy and assistance program for the years 1998 to 2000.

The Secretary of Finance and Administration will be attending the ADB Mission's visits on behalf of the FSM Government. Additional information may be obtained from the Department of Finance and Administration or the EMPAT at the Department of Foreign Affairs.

For further information on this release, please contact:

FSM Office of the President
Public Information: Press, Radio, Video
P.O Box 34
Palikir Station, Pohnpei, FM 96941
Tel.: (691) 320-2548/2092
Fax.: (691) 320-4356