By Robert Hart, Staff ReporterTHE NATIONAL Housing Trust (NHT) has pledged up to $1 billion to four private sector building societies for the financing of a low-interest recovery loan programme for homeowners who suffered damage as a result of Hurricane Ivan.
NHT chairman Kingsley Thomas made the announcement during a press briefing at the Knutsford Court Hotel, New Kingston, yesterday. The press briefing was held to elaborate on an NHT-spearheaded hurricane relief effort announced by Prime Minister P.J. Patterson on Tuesday.
The Prime Minister, who announced to Parliament that NHT borrowers would be able to access a special home repair loan worth a maximum of $250,000 each with a seven per cent interest rate, had also said that a special arrangement had been made between the NHT and the building societies.
THREE-MONTH GRACE PERIOD
Yesterday Mr. Thomas and representatives of the building societies explained that they were ensuring that all affected households could be assisted with a similar $250,000, seven per cent interest loan. Any person whose house has been damaged by Hurricane Ivan and who is able to afford the terms and conditions of the loan may apply.
Earl Samuels, NHT managing director, stressed that the loans would not be applicable to persons whose homes had become dilapidated over the years and wanted to capitalise on the efforts being made in the aftermath of the hurricane. He also pointed out that the borrowers would receive a three-month grace period before repayment begins and that applications must be in by December 31.
"All in all, it is fair to say that many Jamaicans will have a tough time of it over the next couple of months going towards the end of the year," said Earl Jarrett, general manager of Jamaica National Building Society (JNBS).
Karl Wright, president and chief executive officer of Victoria Mutual Building Society (VMBS), said that it was good that the state, parastatal (quasi-government) organisations and the private sector could work together on such a programme. He also said that he did not want people to consider the loan programme a "let off" of funds.
NOT A 'LET OFF' PHENOMENON
"This person does not support the 'let off' phenomenon. It doesn't build institutions and it doesn't build the country," he said. The loans, he suggested, should instead be considered an "easing of the pressure" caused by the hurricane.
"It is heartening to see that we can forget about competition and come together," said Gladstone Whitelocke, general manager of Scotia Jamaica Building Society.
Stafford Robinson, acting manager at First Caribbean Building Society, said that the building societies were sympathetic to what Jamaicans went through "that terrifying night".
Yesterday, Mr. Samuels also indicated that NHT mortgagors benefiting from the three-month moratorium on payments announced by the Prime Minister on Tuesday, number about 50,000-55,000, depending on how many were "in good standing with the NHT".
Mr. Thomas, meanwhile, noted that NHT mortgagors pay an average of $7,000 per month, amounting to about $400,000 per month in total. The NHT will therefore delay receipt of more than $1.2 billion for the length of the payment holiday.
