RTC to waive accrued interest on municipal account

The Rundu Town Council (RTC) has resolved to waiver interest accumulated by the residents on their municipal accounts under its new interest charge incentive program effective from 01 November 2019 until 30 June 2020.

This was announced by the Mayor of the town, Isak Kandingu during a press conference here on Wednesday.

The mayor said that the council has observed that the outstanding debt of its residents is growing exponentially each and every year due to the prevailing economic hardship being experienced in the country.

It is against this background that the council in its meeting held on 16 October 2019, deemed it appropriate to give charges incentives to its residents to pay their outstanding debts, said Kandingu.

The outstanding debt owed by residents attracts an interest rate of 1.67 percent per month, equivalent to 20 percent per annum, and this undoubtedly puts additional payment pressure on the residents.

The mayor said the council resolved to waive 100 percent of interest charges on accounts whose capital charges are to be paid in full between the eight-month period given, applicable to both individuals, corporate and sundry accounts and all types of municipal services irrespective of the outstanding balances.

He explained that the interest and capital charges applicable for the incentive program will be determined on 01 November 2019, however, the mayor further stressed that charges will be expected to be paid in full during the eight-month period and it will be upon the full settlement of capital charges that interest amounts shall be reserved from accounts.

All individuals and corporates with outstanding debts on their accounts may participate in the incentive program provided that they apply on approved application forms available at council offices and submit such forms to the council, the mayor said.

He added that payments of capital charges may be settled in full or in installments over a maximum period of eight months, but, interest charges paid prior to the effective date of the incentive program will not be waived nor refundable.

The mayor further stressed that clients to apply for the incentive during the allocated period may not be subjected to suspension of their water services provided that they have honored their agreement.

Source: Namibia Press Agency