This is just the truth. When banks start suing civil servants for failing to pay back loans, government won’t be involved because it has never been part of the contract between the borrower (you civil servant) and lender (the bank.
Read this carefully????
VOTE SWAP NOT DEBT SWAP
Afternoon Watchdog Team,
As a banker, I would like to add my voice to the freezing of deductions for 3 months by government in view of the ” alleged debt swap” for Civil Servants.
Firstly, I would like to remind indebted civil servants that the loan service agreement was between them(CIVIL SERVANTS) and the Banks. The banks, currently are therefore not a party to this debt swap agreement.
Secondly, the government owes Bayport FINANCIAL services in excess of K400 Million. This implies, a lending institution cannot afford to suspend loan deductions for 3 months, bearing in mind the credit rating for government. In short , the government cannot afford to buy debt( loans) from financial lenders in excess of K5 Billion when they can’t settle Bayport their unremitted loan deduction dues.
So what will banks do when the civil servants salaries are credited next week? The Banks will hold the funds upon credit, they will only release the funds once Government have remitted the loan repayments through the PMEC system. That said, I advise all civil servants to be cautious with Government. Please do not borrow on the premise of the DEBT SWAP, you will be DEBT TRAPPED in a VOTE SWAP.
N.B: On Monday, consult your banker the implication of a debt SWAP, ask in details as to whether the deductions will really be frozen for 3 months, or else it will end in tears