Regulating loan interest rates part of Central Bank’s reforms

By Lagi Keresoma/

Apia, SAMOA – 20 April 2026: One of the intended changes to the Central Bank of Samoa Act is regulating interest rates on loans secured from Microfinance Institutions institutions in Samoa.

The Minister of Finance, Mulipola Anarosa Ale Molio’o said these Institutions have higher interest rates than those charged by the local banks.

She also confirmed that only banks interest rates are regulated and not Microfinance institutions and this is something the FAST Government considered changing when they took office in 2021.

Talamua understands that there are finance institutions who offer different interest rates depending on the salary of the Borrower.

There are also other finance institutions who offer 27% to Borrowers on a business loan and less to the same Borrower who borrows from the same institution for a family loan.

Mulipola said people, especially women borrowers struggle to pay and she is aware that some people only manage to pay back the full amount of the money borrowed but the interest continues to rise.

CBS board members terms for life-Governor serves as Chair
Other intended changes include aligning CBS policies with other Government entities, especially the appointment of the CBS Governor to be endorsed by the Head of State like all other appointments.

CBS is the only Government entity that is not subject to a warrant signed by the Head Of State.

She also said that CBS Board Members serve for life compared to other Government boards who are appointed for least 3 years.

She also said that the CBS Governor is also the Chairperson for the CBS Board questioning the conflict of interest.

IMF letter premature
Mulipola was asked about the intended changes which the International Monetary Fund (IMF) had written to her voicing concerns about the changes.

The Minister was surprised by the letter, especially that she did not write to IMF but said that changes to any Act or law are not new.

Under her portfolio as the Minister of Finance, she looks after 11 finance sectors, and it is normal practice and process of any Government to review and establish new laws or make amendments to current laws.

She said the Ministry is going through the internal consultation on intended changes to the CBS Act before finalising anything, so the IMF letter is premature.

She also confirmed that IMF is a partner and there was a time when CBS sought their opinion, yet they wrote before the consultation was finalised and she believed information was leaked to IMF.

Mulipola is Governor of IMF and World Bank
Mulipola also clarified doubts raised in the private media that she is infact the Governor of several international finance institutions of who Samoa is a member.

According to the IMF Board of Governors structure, each member country appoints a Governor which is normally the Minister of Finance or the Head of the Central Bank.

For Samoa, Mulipola is the Governor for the IMF, the Asia Development Bank and the World bank.

Samoa’s alternate Governor is CBS Chief Executive Officer, Saoleititi Maeva Betham- Vaai while Maiava Atalina Ainuu Enari is the Governor of the Central Bank of Samoa.