C.C.C.S. makes loan payment a priority, balance drops from $15.2m to $11.8m
The balance of a $15.2 million tala loan taken out by the Congregational Christian Church of Samoa (C.C.C.S.) in 2015 from the Samoa National Provident Fund (S.N.P.F.) to build the Jubilee Church has been reduced by $3.4million.
As of today, the balance is $11.8 million.
But the Church wants to make the loan payment a priority so that it can be cleared as soon as possible.
This is according to the C.C.C.S. Finance Committee report for financial year 2017-2018 submitted and discussed during the church’s General Conference at Malua.
“The current loan with the S.N.P.F. is a threat to the finances of the church in going forward,” the report reads. “This is why it is of importance to the Finance Committee to prioritise the repayments of this loan for the financial year 2019.”
The church also opted to delay any big projects over the next three years while they focus on paying off the debt.
According to the Committee's report, the proposed plan is to pay $2.5 million in the next five years with an interest of 7.5 per cent per annum.
“The principal is $11.83 million with interest of $887,539 and repayment is $2.5 million for 2019 the balance will be $10.22 million.”
The church anticipates the balance to be $2.46 million by 2023, according to the Committee's report.
The loan from the S.N.P.F. was to assist with the building of the $17.39 million Jubilee Church project and other developments.
The principal loan amount taken out in 2015 was $15,116,760.17. The first annual payment of $1,743,300 was made on 9 December 2016.
As reported earlier in 2016, the loan increased to $15,209,955.68 due to the interest accumulated, stated the 2017 finance report.
The Committee's report issued last week indicated the need for the church to prioritise the repayment of this loan with the S.N.P.F.