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City Harvest Church (CHC) have defended its decision to take out a new $45million loan, saying that the loan would buy the church extra time in repaying an earlier $50 million loan amid a drop in donations from its members.
The church has taken out a 10-year loan from Freight Links Express Holdings with an average of $5.77 million in interest and other charges every year, which means the church will have to pay back nearly $80 million in total, reported The Straits Times.
In a special edition of the church's in-house newsletter, City News Weekly, it explained that the $50m loan -- which was from construction company Galaxy Capital and taken out in 2011 to nearly double its 20 per cent stake in Suntec Singapore Suntec Singapore International Convention and Exhibition Centre -- was due next year.
An inability to extend the repayment period of that loan beyond Aug 2014 meant the church had to either "put out a capital outlay of $40 million in less than 11 months" or find another way, the newsletter wrote.
That repayment method would not have been realistic as donations to the church's Building Fund have fallen since its founder Kong Hee and his five depouties were brought to court on charges of misappropriating church funds.
In its latest collection which ended in April this year, the church took in just $15 million. Previous collections brought in between $21 million and $24 million each, members said they were told.
The church had approached banks for a loan but they were either unwilling to deal with religious organisations or were put off by the trial. They church's board also considered selling off part of its Suntec stake but decided against it as offer prices were "way below market value".
...and some of that money goes to paying the lawyers' fees after the court battle.
The church has taken out a 10-year loan from Freight Links Express Holdings with an average of $5.77 million in interest and other charges every year, which means the church will have to pay back nearly $80 million in total, reported The Straits Times.
In a special edition of the church's in-house newsletter, City News Weekly, it explained that the $50m loan -- which was from construction company Galaxy Capital and taken out in 2011 to nearly double its 20 per cent stake in Suntec Singapore Suntec Singapore International Convention and Exhibition Centre -- was due next year.
An inability to extend the repayment period of that loan beyond Aug 2014 meant the church had to either "put out a capital outlay of $40 million in less than 11 months" or find another way, the newsletter wrote.
That repayment method would not have been realistic as donations to the church's Building Fund have fallen since its founder Kong Hee and his five depouties were brought to court on charges of misappropriating church funds.
In its latest collection which ended in April this year, the church took in just $15 million. Previous collections brought in between $21 million and $24 million each, members said they were told.
The church had approached banks for a loan but they were either unwilling to deal with religious organisations or were put off by the trial. They church's board also considered selling off part of its Suntec stake but decided against it as offer prices were "way below market value".
...and some of that money goes to paying the lawyers' fees after the court battle.
