October 25, 2001
Notwithstanding that no grandfathering/ transitional provisions for FSD 10 - Posting Loan were included in the revisions to the Foreign Service Directives, which were effective June 1st, 2001, the National Joint Council Committee on Foreign Service Directives has agreed, in the spirit of the grandfathering principles, to implement the following:
1. Posting loans of all employees with more than one year remaining in the repayment period on July 1st 2001 will be adjusted to reflect a 4.5% rate of interest, effective October 1st , 2001. This is a one-time opportunity and will be applied automatically by DFAIT to all eligible loans. No further renegotiations of interest rates will be permitted during the balance of the repayment period of the loan, except where a supplementary loan is approved under FSD 10.05(a).
2. Where a supplementary loan is authorized in accordance with FSD 10.05(a), the minimum amount of the loan for those employees for whom the original loan was approved under the 1993 Foreign Service Directives shall remain at $500, rather than $1,500 as specified in the 2001 Directive.
These special grandfathering/transitional provisions, as outlined above, will be incorporated into FSD 10 - Posting Loan, of the Foreign Service Directives, effective June 1st, 2001.