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.