Loan payment defaulters are being served notice by the AID Bank – the Dominica Agricultural Industrial and Development Bank – that the financial institution is about to more strictly enforce measures to reverse a growing trend of delinquency.
Newly appointed chairman Martin Charles says if funds owed to the bank are not paid up, its mandate to be a catalyst and leader in financing investment in Dominica will be compromised.
Martin says that at the end of the last financial year 2010-2011 loans in the non-performing category totaled EC$19.91 million.
“Over the years the AID Bank has informed the general public that there are persons who have borrowed monies from the AID Bank, they are in a position to pay but yet still they are not paying their loans and as a result our non performing portfolio rose to a substantial amount,” the chairman who took up his official appointment last month, said.
He has indicated that the bank’s five-year strategic plan includes measures to press for loan repayment on the part of delinquents, and said the bank had in the last financial year made strides in the efforts to get defaulters to pay up.
He wants others who have planted themselves firmly in the delinquents’ club to rethink their reluctance to meet commitments that they gave to the financial institution.
“We are not totally satisfied with where we are right now. We believe that much more can be done and will be done. All I am asking is that persons who are delinquent take a decision to make good on their promise and pay AID Bank its monies,” Charles said.
He has expressed concern that the non-payment of monies will affect the Bank’s ability to finance projects in the productive sector, which is instrumental in sustaining investment, creating jobs, and increasing foreign exchange earnings.
All the delinquents are the ones who got faster approval. Ppl like me had to stand on my head and beg before I could get a six pence from them. And until now… I am in good standing. Stop pressing the poor man, serve you all right and make this be a lesson learned.
that the bank have to do so long wi, Instead of STIFLING NEW BUSINESS with the excuse that people are not paying their loans (delinquent), put some stringent measures in place for paul and stop making peter pay. YES we can give you the loan, easily, but you will chew glass if you try and escape your obligation to pay…. good stuff man.
thank you met yo.the govt. condones this behavior
So what about those of us who are paying up extremely well?
And the banks in dominica should be going to find there moneys that thay a giving out to the outside people that comes to dominica to do business and leaving without paying back the money to our banks.but when its dominicans you all gos all out to find them that good for them thats what thay ask for dominicans should not be asking bank for money to do everything thay should have work and making money like befor under the U.W.P good lock thay to love hand out take that now.
On one hand the country is doing so much better than any other OECS country yet on the other there are so many delinquent loans. Isn’t it time for the bank to review its lending terms and conditions and ask itself if because of their system of lending they themselves are creating delinquent borrowers?
On the other hand, the PM says he understands the impact that the global recession has had and has obtained 20 million dollars which he will ask the AIDB to lend at 3 percent yet his new Chairman totally contradicts him but at the same time echoes the earlier threats made by the PM that people should pay up – if you cannot pay back do not borrow.
Does the Bank and the PM really believe that people really borrow money to get into debt? What creates debt? The business climate must give business the chance to breathe instead of choking the private sector. It would seem that some institutions rejoice when people are unable to pay instead of taking some responsibility or being realistic about the investment climate in Dominica. Is it conducive to investment, domestic or foreign?
So tell Martin Charles to stop parroting the PM who put him there to sing his song – until the Bank and its new Chairman accept the fact that they must review their lending policies to enhance business instead of stifling it the delinquent loan portfolio will only grow.
Let them pay. Force dem to pay. Poor malayway stayn hungry twice a week to pay d little loan dey takn n grand jean doh want to pay dere loan and is day dat are pillars of morality on radio, tv and on the streets. Driving big suv. Dat my friend ting must end. Pay d money so others can get loans and d 9% interest rate can go down wat aid bank think we stil in the 80’s. Every where else is less than 8%
hate a dog, but say it teeth white!!! kudos
Why are they so slow to collect and before the loan is granted a booklet of information must be submitted to A I D bank.What happens to the blank salary deduction form everybody must sign?Get the payments and lookout for the big ones who are owning?
We have to put a system in place whereby persons who are delinquent at any one financial institution would be automatically denied credit at other institutions(banks, credit unions,fast cash etc)
One way to start is to use peoples social security numbers to identify people.Next we must establish a bureau to which all financial institutions woul be required to submit the names and social security numbers of delinquent(bad paymasters)people.Finally when someone applies for a loan an electronic check(enquiry) would be made using the person’s social security number.A list of all creditors and payment history would surface.All decisions to approve or disapprove would be based on the information in front of the loan officer. By using this method delinquencies would be reduced by 75% guaranteed.
I agree with Aid Bank, you sign the contract to pay back the loan on time and smiled when you were approved, you need to pay it back. Is all these things that affects the island my people in regards to development. When you pay back your loan on time, the bank will then have more money at its disposal to loan to other people who are seeking loans whether is for a business opening or something else. Dominicans like to take a lot of things for granted. THE MONEY IS NOT YOURS, PAY IT BACK PERIOD!
Why all the noise instead of seizing the assets covered by these loans, as any normal lender would do? Are they afraid it may unsettle their balance sheet perhaps?
It’s easy to say, seize the assets but when we are talking about people’s homes and land, it’s a long and drawn out process during which interest is building on the loan and the person still not paying. Banks don’t want your house or your land – they are not real estate agents. Banks want their money back. Pay up.
First of all, as I understand it the AID Bank is not a traditional retail bank and I doubt they hold many mortgages on residential property. It are mainly loans advanced on commercial property that are in default, with the people, who contracted those loans still enjoying a decent, personal living. The bank would not have approved these loans if they did not think if was a sound investment backed by sound collateral.
What about posting the names of the delinquent ones. It is unfair for some people to deliberately not pay back their dues while others are.
And would that action be fair to those who are trying hard to repay but still running delinquent???!!!
The people that disliked the comment above must be Delinquents…
I hope “HE” pay back the mileage that was claim for Roseau to St. Joe, when it was Jimmit “HE” was living.
Plus he works in town so he has to come to town anyway Meeting or no Meeting so why is he claiming in the first place.