In yet another indication of its commitment to the RMI, during last week’s visit, Taiwan Foreign Minister Dr. Lin Chia-lung joined RMI Foreign Minister Kalani Kaneko to sign a letter of intent to establish an Economic Resilience Fund to support a Credit Guarantee Facility of the RMI.
The Credit Guarantee Facility is particularly targeted for supporting development of the private sector.
“This fund intends to serve as collateral for the local bank to help lower the borrowing rate for local businesses, so as to boost local investments,” Taiwan Embassy First Secretary David Lin explained. “For this Taiwan has pledged $20 million to initiate the Fund.
This development was officially signed by the two foreign ministers at a banquet held last Wednesday at the Marshall Islands Resort.
The development had already been announced during the roundtable development partners meeting at the end of February in Majuro.
And this new $20 million pledge to help guarantee private sector borrowing is only one of a number of initiatives by Taiwan.
Others include:
- Additional $1 million in new funding pledged for the Kora Fund for small loans for women’s business developments.
- The waiver of a loan that funded construction of the Jenrok track and field in 2023-2024 and conversion of it to a grant. The amount of the loan-now-grant is $6.2 million. The unveiling of a memorial plaque during last week’s visit both confirmed the waiver and signified the importance of the project.
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