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‘Relax loan policies for govt workers’
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Posted on Mar 22 2006
With the planned reduction of employees’ work-hours in the CNMI government, Gov. Benign Filial is appealing to local financial institutions to relax their loan policies for affected workers.
Fitial said reduction of work-hours and compensation of employees in different government agencies will affect many government workers, who may have difficulty in paying off loans and financial obligations with local financial institutions.
Fitial has sent letters to various companies, including the Bank of Hawaii, Bank of Saipan, BankPacific, First Hawaiian Bank, Friendly Finance Co., Wells Fargo Financial, Isla Financial Services, and the Bank of Guam.
“During these difficult times, I am asking your institution’s indulgence in making reasonable accommodations to all affected government workers with pending financial obligations in your institution. I ask you to consider refinancing loans at lower rates or granting extensions of payment,” Fitial said.
“As our economy improves, and as we are able to secure more investments and more revenues for our government, we expect to eventually restore these cuts so that our government workers and your clients will be in a better position to meet their obligations,” assured the governor.
Fitial said reduction of work-hours and compensation in the CNMI government has become necessary as part of austerity measures to cope with revenue shortfall amid tough economic times.
The government has revised the budget for the current fiscal year from some $213 million to $198.5 million due to lower revenue projections.
The governor assured that the cuts in work-hours and pay will not be permanent.
