XN000022-1981-08-17 — Page 10

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MONDAY, AUGUST 17, 1981

MORE FLEXIBILITY IN CIVIL SERVANTS REFINANCING SCHEME

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CERTAIN CHANGES HAVE BEEN MADE TO THE CIVIL SERVANTS REFINANCING SCHEME, ALLOWING A SIX-MONTH EXTENSION UP TO MARCH 11, 1982 FOR LOAN APPLICATIONS, AND PROVIDING MORE FLEXIBILITY IN OBTAINING AND REPAYING THE LOANS, A SPOKESMAN FOR THE CIVIL SERVANTS' FINANCE ADVISORY OFFICE ANNOUNCED TODAY.

HE POINTED OUT THAT THESE CHANGES WERE MADE IN THE LIGHT OF EXPERIENCE GAINED FROM THE PREVIOUS FOUR MONTHS OF THE SCHEME.

IN THAT TIME, IT WAS FOUND THAT A NUMBER OF APPLICANTS COULD AFFORD TO REPAY MORE THAN 25 PER CENT OF THEIR BASIC SALARIES EACH MONTH, WHILE SOME WOULD REQUIRE A LARGER REFINANCING LOAN THAN PERMISSIBLE THROUGH REPAYMENTS OF 25 PER CENT OF THEIR SALARIES, THE SPOKESMAN EXPLAINED.

+THIS QUESTION WAS RAISED WITH THE INSTITUTIONS PARTICIPATING IN THE SCHEME AND AGREEMENT HAS BEEN OBTAINED FROM THE MAJORITY OF THEM TO ALLOW CERTAIN FLEXIBILITY IN CALCULATING THE AMOUNT OF THE REFINANCING LOAN WHICH THEY ARE PREPARED TO GIVE, HE SAID.

THE FOLLOWING ARE THE MAIN CHANGES:

(A) THE SIZE OF THE LOAN WILL HAVE TO BE WITHIN

THE BORROWER'S REPAYMENT ABILITY-

(B)

(C)

UP TO 40 PER CENT OF THE SALARY (AS AGAINST 25 PER CENT PREVIOUSLY) MAY BE REPAID MONTHLY ON THE LOAN FOR A TEN-YEAR PERIOD-

IF A SPOUSE WITH A STEADY INCOME AGREED TO HELP, THE SIZE OF THE LOAN MAY BE INCREASED TO A SUM REQUIRING A MONTHLY REPAYMENT OF 50 PER CENT OF THE BORROWER'S SALARY.

A CHANGE HAS ALSO BEEN MADE TO ALLOW REFINANCING FOR SETTLEMENT OF DEBTS INCURRED AFTER MARCH 12, IF THE NEW DEBTS WERE FOR THE PURPOSE OF REPAYMENT OF A LOAN OR PAYMENT OF INTEREST FOR A LOAN ACQUIRED BEFORE THAT DATE.

THE PERIOD OF GRACE CONCERNING CIVIL SERVICE REGULATIONS ON PECUNIARY EMBARRASSMENT, INSOLVENCY AND BANKRUPTCY WILL ALSO BE EXTENDED IN KEEPING WITH THE APPLICATION PERIOD. STRICT CONFIDENTIALITY WILL BE MAINTAINED ON APPLICANTS WHO HAVE APPLIED BEFORE OR WILL BE APPLYING DURING THE EXTENSION PERIOD.

ALSO, FROM SEPTEMBER 14, THE OFFICE HOURS OF THE FINANCE ADVISORY OFFICE WILL BE FROM 9 AM TO 5.30 PM ON WEEK-DAYS AND FROM 9 AM TO 12 NOON ON SATURDAYS.

UP TILL LAST MONTH, 1 900 APPLICANTS WERE GIVEN REFINANCING ASSISTANCE INVOLVING AMOUNTS TOTALLING $30 MILLION. MOST OF THE APPLICANTS WERE IN THE $1 500 TO $2 000 SALARY GROUP AND BETWEEN 21 AND 40 YEARS OF AGE.

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