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Refinancing for gov’t employees affected by austerity measures urged
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Posted on Nov 26 2006
The House of Representatives on Friday adopted a resolution urging financial institutions to assist government employees affected by austerity measures.
House Resolution 15-78 requests all banks and financial institutions to provide alternative refinancing options such as lower monthly payments or extended grace periods to public employees who are getting less pay due to the government-wide work hour reduction and other cost-cutting measures.
Copies of the resolution will be sent to Bank of Guam, Bank of Hawaii, Bank of World Inc., Bank Pacific Ltd., City Trust Bank, Financial & Insurance Services Group Inc., First Hawaiian Bank, Hong Kong Shanghai Banking Corp., Friendly Finance Co. Inc., Isla Financial Services Inc., and Wells Fargo Financial.
The resolution is also addressed to government agencies such as Commonwealth Development Authority, Northern Marianas Housing Corp., NMI Retirement Fund, CNMI Scholarship Office, Commonwealth Government Employee Credit Union, and the U.S. Department of Agriculture, CNMI Office.
The CNMI government has reduced government employee work hours from 80 to 72 per pay period. This represents a 10-percent salary cut for all affected employees.
Meanwhile, the cost of fuel, goods, and services in the Commonwealth has gone up. Electric rates have more than doubled.
“The salary cut, the increases in the cost of fuel, goods, and services, as well as the electric rate increases have crippled the financial ability of many government employees to purchase basic necessities and pay for loans, mortgages, and other debts owed to creditors,” the resolution stated.
