28 Jul 2004

American Samoa reviews lending laws

6:29 am on 28 July 2004

The government in American Samoa is proposing a measure that would allow local financial institutions to charge up to 24 percent interest per year to customers seeking loans up to 5,000 US dollars.

Governor Togiola Tulafono said the proposed legislation is to provide lending institutions in the territory greater flexibility in the maximum interest rate chargeable in order to provide expedited and ready access to small lending products.

He said the new provisions will give local banks the ability to better manage the risks associated with providing small unsecured loans up to 5,000 dollars.