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Nena Updates Governors on Status of PSRP Loan from ADB

PALIKIR, Pohnpei (FSM Information Service): February 17, 1997 - In a January 14 communication to all Governors of the four FSM States, Acting President Jacob Nena updated the governors on the status of the proposed Public Sector Reform Program (PSRP) Loan from the ADB.

As you are aware, the last ADB mission that visited the FSM in December resulted in a Memorandum of Understanding that was drawn up and signed between the FSM National Government and the mission to reflect agreements that were reached.

Included in the agreements were actions that were to be taken in order for the Loan Proposal to be submitted to the ADB Board. One such action was the enactment of Early Retirement enabling legislation by each of the five governments.

The National Government Early Retirement legislation has been drafted. It was anticipated that Congress would pass the Early Retirement legislation by mid-January. Unfortunately, the next Congress Special Session is scheduled to be held immediately following the March 1997 elections.

"While the delay at the National level is unfortunate, said Nena, "I am also aware that at this moment not all of the states have fully implemented steps agreed upon with the ADB. I urge you as Governor to put every effort into your own state's reform actions so that the FSM as a whole can benefit from the PSRP Loan which will help us to our achieve our common goal of shifting the balance away from the public sector in favor of private sector-led growth."