New system for bank loans

Main Stories, National

The National, Thursday 23rd May 2013

 PRIME Minister Peter O’Neill revealed in Parliament yesterday that a new banking system will soon be implemented to identify genuine loan applicants.

O’Neill said a credit rating system would be installed in banks to determine whether the applicant was genuine and did not have outstanding or unpaid loans with another bank.

“We have a very high culture of not repaying loans or we go to the next financial institution to get another loan,” he said.

“ If you borrow money you must repay it because if you don’t you will just make it difficult for the next person who wants borrow as to cover the unpaid loans interests rates will be increased.”

O’Neill also warned people about “red door” financing companies not endorsed by the Central Bank.

He said people should not borrow money from such private financing firms as they charged as much as 150% interest on borrowed capital because they were not regulated.