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BY ERICA VIRTUE Observer writer virtuee@jamaicaobserver.com
Friday, January 23, 2009
THE People's National Party Youth Organisation (PNPYO) is calling on the Government to roll back the interest rates on National Housing Trust (NHT) mortgages with immediate effect, saying that 96 per cent of the more than 12,000 accounts in arrears occurred in the last quarter of 2008.
At a press conference held at its Old Hope Road headquarters yesterday, PNPYO president Damian Crawford predicted that Jamaicans will begin losing their homes and "sense of security" as the financial crisis worsens.
People's National Party Youth Organisation president Damian Crawford (left) gestures while addressing journalists at yesterday's press conference at the party's Old Hope Road headquarters while general secretary Ricardo (Taj) James listens. (Photo: Bryan Cummings)
"We are very concerned that there is such a high level of arrears at the NHT. We believe that the situation will further deteriorate with the multiple layoffs that has happened or is about to happen, the monetary policies to control the dollar and the resultant increase in mortgage rate and by extension mortgage payments required.," he said.
Crawford said that figures obtained from the NHT showed that as at a fortnight ago, 12,357 persons were on the default list at the NHT, 96 per cent of whom went in arrears between October and December last year.
The Jamaica Labour Party (JLP) Government last year, in its first budget presentation in 18 years, announced increases to the interest paid on mortgages, which resulted in a spike in rates on loans offered by other institutions.
Last year also saw the collapse of several alternative investment schemes as well as the contraction of trade which resulted in a number of layoffs and redundancies.
Yesterday, the PNPYO demanded that the Government roll back the rates to the four per cent it inherited when it took office in September 2007, saying that the move would save the single borrower who received a $3-million loan, 43,956 per year, or $3,663 per month in mortgage payments, while a couple who borrowed $6-million would save $87,948 per year, or $7,329 per month.
At a JLP Area Council One meeting Sunday, Prime Minister Bruce Golding said the NHT earnings have improved significantly compared to what his administration inherited from the People's National Party when it assumed power in 2007.
Under the PNP's 18-year reign, the trust's money was used to finance several other projects including the loss-making inner-city housing programme, the education transformation programme and housing for sugar workers.
"When the financial results are revealed for 2008-2009 you are going to see that what we inherited, which is something like a $600-million loss, we have turned that around and the trust is once again in a profitable position.," the prime minister said to applause from labourites attending the meeting.
The NHT has significant financial reserves of more than $15 billion in assets.
The prime minister also told Sunday's meeting that based on the NHT's own projections after a retreat three weeks ago, only 50 per cent of its current contributors would be able to qualify for the cheapest housing solution offered.
http://www.jamaicaobserver.com/news/...LLED_BACK_.asp
Friday, January 23, 2009
THE People's National Party Youth Organisation (PNPYO) is calling on the Government to roll back the interest rates on National Housing Trust (NHT) mortgages with immediate effect, saying that 96 per cent of the more than 12,000 accounts in arrears occurred in the last quarter of 2008.
At a press conference held at its Old Hope Road headquarters yesterday, PNPYO president Damian Crawford predicted that Jamaicans will begin losing their homes and "sense of security" as the financial crisis worsens.
People's National Party Youth Organisation president Damian Crawford (left) gestures while addressing journalists at yesterday's press conference at the party's Old Hope Road headquarters while general secretary Ricardo (Taj) James listens. (Photo: Bryan Cummings) "We are very concerned that there is such a high level of arrears at the NHT. We believe that the situation will further deteriorate with the multiple layoffs that has happened or is about to happen, the monetary policies to control the dollar and the resultant increase in mortgage rate and by extension mortgage payments required.," he said.
Crawford said that figures obtained from the NHT showed that as at a fortnight ago, 12,357 persons were on the default list at the NHT, 96 per cent of whom went in arrears between October and December last year.
The Jamaica Labour Party (JLP) Government last year, in its first budget presentation in 18 years, announced increases to the interest paid on mortgages, which resulted in a spike in rates on loans offered by other institutions.
Last year also saw the collapse of several alternative investment schemes as well as the contraction of trade which resulted in a number of layoffs and redundancies.
Yesterday, the PNPYO demanded that the Government roll back the rates to the four per cent it inherited when it took office in September 2007, saying that the move would save the single borrower who received a $3-million loan, 43,956 per year, or $3,663 per month in mortgage payments, while a couple who borrowed $6-million would save $87,948 per year, or $7,329 per month.
At a JLP Area Council One meeting Sunday, Prime Minister Bruce Golding said the NHT earnings have improved significantly compared to what his administration inherited from the People's National Party when it assumed power in 2007.
Under the PNP's 18-year reign, the trust's money was used to finance several other projects including the loss-making inner-city housing programme, the education transformation programme and housing for sugar workers.
"When the financial results are revealed for 2008-2009 you are going to see that what we inherited, which is something like a $600-million loss, we have turned that around and the trust is once again in a profitable position.," the prime minister said to applause from labourites attending the meeting.
The NHT has significant financial reserves of more than $15 billion in assets.
The prime minister also told Sunday's meeting that based on the NHT's own projections after a retreat three weeks ago, only 50 per cent of its current contributors would be able to qualify for the cheapest housing solution offered.
http://www.jamaicaobserver.com/news/...LLED_BACK_.asp
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