Board to declare interest rate today
SOLOMON ISLANDS National Provident Fund (SINPF) members will know what interest they’ll be paid this year when the fund declares this today.
After a tough year of battling public criticisms and scrutiny over some of their investment decisions and loans, particularly the $15m Tavanipupu loan, the board sailed through the rough waters successfully and can now declare the rate for this year.
In 2013, the rate hit the ceiling with the announcement of a 20 percent interest, much to the excitement of members.
The institution however came under spotlight the following year (2014) over some decisions, particularly the $15m Tavanipupu loan, which was unearthed and sparked membership outcry.
The board staunchly defended the hefty financial deal and kept assuring and guaranteeing members of the safety of their money.
Living up to their public guarantee and promise, the SINPF board early this year executed its right under the loan agreement to recover the money, when the borrowers defaulted on their third scheduled interest payment.
This is in the form of taking control and ownership of the renown Island resort.
Amidst the grim face last year (2014), the board continued to announce another towering interest rate of 15 percent.
This year’s interest rate remains everyone’s guess since last week, with many members hoping for another attractive one.
But with the failed Tavanipupu deal, some members remain sceptical of a remarkable interest offer this year.
“But let’s hope they’ll give us a record per cent interest rate this year,” one member said.
Whatever interest rate is awarded to members this year, a good number of members stand to miss out because of the non-payment of their loans with Pan Oceanic Bank (POB).
A good number of members rushed to join POB when it was opened last year to borrow money using their NPF contributions as security.
The bank this year commenced the process of claiming National Provident Fund (NPF) savings of up to 300 of its clients who failed to repay their loans.
Some 6000 people borrowed money from POB when it opened its doors last year.
The interest declaration today is expected to be made before midday at the SINPF board room.
By EDNAL PALMER
