27 Nov 2003

American Samoa government approves loan to hospital

11:39 am on 27 November 2003

A measure authorising the American Samoa government to loan 5 million US dollars to the government-owned LBJ Medical Centre has been signed into law, but both sides have still to finalise the loan documents.

The administration hopes the money will help the hospital overcome its current financial problems and provide the people of the territory with a high standard of health care.

According to a report given to lawmakers last month, the hospital has outstanding debts of almost seven million US dollars.

The loan, which will earn the government 700 thousand dollars in interest, is to be used to cover the most critical outstanding debts, including payments to the US Internal Revenue Service.