19 Jan 2015

Change to Samoa loan scheme postponed

12:07 pm on 19 January 2015

Samoa's National Provident Fund has accepted a cabinet directive to postpone its policy change to the contributor's small loan scheme until March, after thousands of people voiced anger at the change.

The Prime Minister, Tuila'epa Sa'ilele Malielegaoi says the change to the total contribution for an entitlement loan from 50 percent to 45 percent is a great move that allows contributors to save more funds for their retirement.

However, he says NPF management has not given enough time to introduce and discuss the policy change.

Our correspondent says hundreds of people have been turned away from the normal process of applying for loans since the implementation of the policy at the start of the year.

The NPF's general manager, Faumuina Esther Lameko Poutua, has apologised for errors.