Church’s loan repayments on track
The Congregational Christian Church of Samoa’s annual payment of $1.7 million to pay back a $15.11 million loan from the Samoa National Provident Fund is up to date.
This was confirmed by C.C.C.S. Finance Committee chairman, Le Mamea Ropati Mualia, during an interview with the Sunday Samoan at his office recently.
The loan from the S.N.P.F. was to assist with the building of the Jubilee Church project and other developments.
Last year, the C.C.C.S. celebrated the opening of their $17.39 million Jubilee Church.
In March, the Komiti o Feau Eseese made recommendations in their report for the Church to reconsider the annual payment of $1.7 million.
According to the report, the total of amount of the loan that was taken out in 2015 was $15,116,760.17 with the annual payment of $1,743,300 that was first paid on 9 December, 2016.
The loan amount was increased to $15,209,955.68 due to the interest, the report noted.
“After the first payment, the loan amount was reduced to $13,466,655.68."
“The second payment of $1,743.300 made on 13 November 2017 and by that time, the loan balanced had increased to $14,426,357.69 due to the interest."
“This means that $959,592.01 went directly to the interest leaving only $737,707.99 paid to the loan balance."
“To date, $3,486,600 has been paid, yet the balance of the loan is $12,683,057.69 due to the interest.”
According to the report, if the annual payments continue rather than monthly payments, the Church is looking at paying $23 million and payments will be completed by the year 2029.
The committee has recommended that the Church to make monthly payments of $145,275.
However, the Finance Committee chair disagreed.
“The payments are up to date and there is no need for a change. We will stick to the initial plan,” he said.
“I have recommended to the Treasurer to make another payment of half a million ($500,000) so we can pay off this loan sooner rather than later."
“We have enough funds to make that extra payment,” added LeMamea.