GGMC provides $3B to Housing Sector

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Minister of Housing, Irfaan Ali.
Minister of Housing, Irfaan Ali.

[www.inewsguyana.com] – The Guyana Geology and Mines Commission have signed a Loan Agreement following the submission of an investment proposal by the Central Housing and Planning Authority (CH&PA) in January 2015.

A joint statement from the GGMC and the CH&PA noted that the proposal is for the investment of $3 B to be loaned to the CH&PA for a period of one year and to be used for the development of the housing sector.

“The Board of Directors of the Commission met and deliberated on the proposal submitted and it was noted that the interest rate being offered by CH&PA was 5% which was 3.2% more than what was currently being earned via the commercial banks and other investment options open to the Commission,” the statement noted.

It was further noted that one year loan will have the interest calculated using the reducing balance and in the event of CH&PA fails to repay the entire amount by the deadline, the Commission has the right to increase the interest rate to 7%.

“At the level of the Board of Directors, it was agreed that the investment proposal was financially prudent and sound. In this regard, the Board agreed to the granting of the loan subject to the terms and conditions enshrined in the Loan Agreement and any additional guarantees required by the Commission.”

It was noted that the housing project is pivotal to the realization of the government’s strategic target of allocating 30,000 lots under the Adequate and Affordable Housing Programme in order to maintain momentum in the provision of service land in several areas on the East and West Demerara.

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