Government of the Federated States of Micronesia

FDA Proposed Legislation

PALIKIR, Pohnpei (FSM Information Service): April 16, 1997
– Acting President Jacob Nena transmitted to Congress Speaker Jack
Fritz on April 4, 1997, a proposed legislation for a favorable
consideration of Congress.

The purpose of the proposed bill is to continue the role of
Federal Development Authority (FDA) for the purpose of fulfilling its
secondary role in administration of Investment Development Fund (IDF)
including approval of new loans, amend existing loans, amend lending
guidelines and take other actions necessary in the proper functioning
of the IDF.

The IDF’s enabling legislation must be amended to be consistent
with its present existence. The bill is proposed based on the theory
that the National Government may unilaterally reconstitute the FDA
for the purpose of supervision.