African Bank In Landmark Agreement With Government
African Bank Media Release
21 June 2001
African Bank, the country's largest credit bank, yesterday became the first
lender to sign an agreement with government under the payroll deductions
regulations published in April this year.
In terms of the agreement, the bank will have continued access to payroll
deductions for its existing loan book for public service employees. African
Bank will also be able to offer new consolidation loans, at lower rates to
government employees with existing payroll loans, in order to improve the
client's take home pay.
The signature of this agreement signals the normalisation of the collection
situation on the state payroll book. This follows the cabinet decision in
June 2000 to terminate all insurance and discretionary loan deductions on
the state payroll (PERSAL) system on 30 June 2001.
Leon Kirkinis, ABIL Group CEO welcomed the conclusion of this agreement as a
strong signal from government about the value of payroll deductions as a
form of security. "This enables access to much needed financial resources
for those who may not have assets to pledge as security."
African Bank has historically been the dominant provider of unsecured loans
to public service employees and are, under this new deal, set to stabilise
their relationship with government and its employees in respect of payroll
loans.
Ends
Issued by : African Bank Media Relations
Tel: (011) 256-9053
For more information, please contact :
Theresa Gangaram
Manager: Persal
Tel: (011) 256-9630/083 456 0365
or
Angus Herselman
Executive Director: Operations
Tel: (011) 256-9233/082 497 5152
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