Prime Minister Peter O'Neil yesterday, signed a Memorandum of Understanding with Bank South Pacific, to enable the country's first Home Ownership Scheme.
The National Government has given the first contribution of 200-million Kina to kick start the scheme. Mr. O'Neill said, after failing many attempts to set up a housing scheme for the country, the Government now wants to start a scheme with the bank, which he believes will work for PNG. Depending on your affordability you can borrow up to 400-thousand kina for 4 percent increase rate over 40 years. That is by far that the cheapest housing scheme anywhere in the world. And this arrangement is done on a commercial term. This is not done because government is funding it. Government is just providing funds so that they can borrow it, not even security. We are not securing the loan. So every government is trying to put in 200-million kina, rather then just wasting money everywhere. We will give it to the bank to make sure it lends to as many Papua New Guineans as possible". Mr. O'Neill adds that Cabinet has forfeited all Un-Developed Land, and will be using these to start the scheme. The government has also asked the bank to make sure borrowers who obtain loans, should not be buying established houses, but building new ones. Mr. O'Neil said this will create employment, and will also discourage Real Estate Companies, charging excessive prices. Twenty Officers from the Finance Department, will be the first recipients of this loan. Comments are closed.
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