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Gov't seeking to make it easier for public servants to access loans

- Cabinet proposes legal framework
Public servants looking to borrow loans from private financial institutions could soon have an easier route where the money comes as part of a framework set-up between the government and the financial institution. Photo: Internet Source
The Virgin Islands Party (VIP) Government led by Premier and Minister of Finance, Honourable Andrew A. Fahie (R1) is seeking to create avenues for public officers to easily access loans. Photo: VINO/File
The Virgin Islands Party (VIP) Government led by Premier and Minister of Finance, Honourable Andrew A. Fahie (R1) is seeking to create avenues for public officers to easily access loans. Photo: VINO/File
ROAD TOWN, Tortola, VI - Public servants looking to borrow loans from private financial institutions could soon have an easier route where the money comes as part of a framework set-up between the government and the financial institution.

This is according to the post-meeting statement of the Cabinet Meeting held on October 9, 2019, where members acknowledged that legal doctrines ought to be created to simplify the borrowing process.

While many jurisdictions offer government loans where money can be borrowed directly from a government agency, this system proposes the establishment of private government-approved lenders to provide financing.

Legal Framework 

According to the statements, Cabinet "Agreed that a legal framework should be established between Government and financial institutions where public officers can borrow money," it said.

It continued, "and direct payments are made to those financial institutions to repay the loans and other financial transactions on behalf of the public officer," the statements said.

While no timeline was provided for the establishment or drafting of the framework, it is expected that loan repayment will be deducted directly from the salaries of public servants by the government.

Virgin Islands News Online (VINO) reached out to Premier and Minister of Finance, Hon Andrew A. Fahie (R1) for the timeline on the creation of the legal framework; however, no response was received up to publication time.

22 Responses to “Gov't seeking to make it easier for public servants to access loans”

  • ok (05/11/2019, 12:10) Like (17) Dislike (1) Reply
    Happy to hear this.

    Government can you please next address the number of loans being turned down by good old National Bank. They behaving like a foreign commercial bank now.
    • True (05/11/2019, 14:53) Like (0) Dislike (10) Reply
      they don't turn any down but whats the point of asking for a loan of $5000 when you have $5000 in your account? Makes no sense to me!
      • @True (05/11/2019, 16:29) Like (16) Dislike (0) Reply
        It’s called establishing a line of credit
      • HMP (06/11/2019, 03:41) Like (0) Dislike (0) Reply
        So spend the $5,000 and have $0; then, say later on, we can ask for $5,000.00? Interesting- we shall
        Try that and don’t worry come saying you have no savings and don’t qualify.
      • ??? (06/11/2019, 13:11) Like (0) Dislike (0) Reply
        Hope you do not work for the bank or have any dealings with finances,making a future ,especially for yourself.
  • Good Initiative (05/11/2019, 12:24) Like (7) Dislike (0) Reply
    I welcome this initiative Mr. Premier and hope to see this commence in the start of the new year. I hope I have been trying to get a loan from the various banks for years to start building and have not been successful. All the banks that I tried told me at one point that I had a high debt ratio. My land has been paid off since 2005, and all I was owing and paying for was a jeep loan and a $4,000 credit card bill which I was paying every month on. Really and truly I do not know what they were trying to say to me.
    • Standby (06/11/2019, 08:23) Like (3) Dislike (0) Reply
      Debt ratio TOO high because your current salary with expenses DO NOT co-exist. Get another income to help decrease debt ratio.
  • Strupes (05/11/2019, 13:26) Like (0) Dislike (6) Reply
    pure talk
  • resident (05/11/2019, 14:08) Like (10) Dislike (4) Reply
    Really bad idea. Government is backing private loans. if they default government will own the debt. Find a better way. Also ripe for fruad.
    • x (05/11/2019, 15:25) Like (6) Dislike (0) Reply
      Who said anything about the government backing any loans. Read again very slowly.
      • Insanr (07/11/2019, 00:08) Like (1) Dislike (0) Reply
        So a whole lot more deadbeat workers will remain on the job to payback their salary deducted loan...Gov should not be involved with
        the banks in this manner. It smells unethical..
    • school children (05/11/2019, 16:45) Like (1) Dislike (0) Reply
      Didn't you read where it was mentioned that the payments will be deducted from the officer's salary.
      • Just saying (05/11/2019, 22:05) Like (5) Dislike (0) Reply
        What happens if the Officer no longer works for the Government?
  • nonsense (05/11/2019, 14:41) Like (8) Dislike (0) Reply
    Good initiative I bet if you wanted a loan for a vehicle you would get it. I'm in a similar situation to have already paid off my loan and actually have the cistern down and they telling me i need to put in more work on the property. I do hope that this initiative will help us single parents who work hard and trying to get your own roof over your head as you cant live in a car.
  • @ resident (05/11/2019, 15:55) Like (2) Dislike (0) Reply

    you are such a blasted moo moo. Where did you see government backing private loans? it said that Government employees will have a better chance of getting loans. It also said that the payment will be deducted from their salaries so that payments are made.
  • state side (05/11/2019, 16:24) Like (14) Dislike (0) Reply
    Just an idea. Why not develop a Municipal Credit Union for the employees that works in Public Sector.
  • hmmmmmm (05/11/2019, 17:41) Like (3) Dislike (0) Reply
    This really is an issue of money management. Individuals will still have to qualify for the commercial loan. Gov't don't run the Corporate world. Is this a way of getting a portion of the 1,000 jobs in 1,000 days so that we can hire people to aid in this endeavor? Whilst there are some stupid problems (like the bad-mindedness of others) for some people to get loans, there are also genuine reasons why some do not get loans and it boils down to the debt: income ratio among other matters including the state of the economy. More details are needed concerning the success of this venture.

    What about borrowing (a restricted amount) against your vested social security account. Afterall, not many will live to see the funds anyway and by the time you get it if you live, inflation done eat into it? If you dead before retirement age, you only get the death benefit portion, nothing else
  • Wow (05/11/2019, 17:53) Like (2) Dislike (3) Reply
    I swear anything positive the government does, always have the most haters here to say nay... you all need to sit down.
  • Socrates (05/11/2019, 22:10) Like (3) Dislike (1) Reply
    Banks makes money by taking in deposits, paying embarrassingly interest and issuing loans at high interest. Do residents have difficulty get loans from financial institutions? Are the rates from financial institutions sky high? Will the the government guaranteeing the loans lower the rates? Does the government guaranteeing loans apply to all employees or just low income employees? I’m averse to government doing Direct Deposit or paying employee obligation to third parties, ie, banks. Government should not be in competition with the private sector
  • Priorities (06/11/2019, 10:51) Like (3) Dislike (1) Reply
    Stop blaming the Financial Institutions for refusing to grant loans because most people here in the BVI have their priorities screwed up when it comes to money management. Why would you go on cruises every year or expensive vacations when you don't even own the roof over your heads, every body else will always come here and own their homes because all we are interested in is going on cruises and vacations. Most on them will just borrow this money for vacation, wake up people!
  • cara (06/11/2019, 14:37) Like (0) Dislike (3) Reply
    Hello Everyone!
    I am Cara , currently living in Cork, Ireland . I am a widow at the moment with Two kids and i was stuck in a financial situation in October and I needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success, and most banks declined my credit. But as God would have it, I was introduced to a Co-operative Runs by a man of God a private loan lender who gave me a loan of 80,000euro and today am a business owner and my kids are doing well at the moment, if you must contact any firm with reference to securing a loan without collateral , no-credit check, no co-signer with just 2% interest rate and better repayment plans and schedule, please contact Mr. Dante Paola via email: dantecooperativehelp@hotmail.com He doesn’t know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless him more. You can contact him through his email: dantecooperativehelp@hotmail.com for quick chat call or whatsapp/ +35677926593

    Thanks
    Cara


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