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Lecturer tells FINSAC Enquiry about how his loan ballooned
Anthony Hutchinson, giving evidence at the FINSAC Commission of Enquiry.
Farmer and accounting lecturer Anthony Hutchinson, who was once part owner of 16 acres of land in May Day, Manchester, again took the witness stand at Thursday’ sitting of the Commission of Enquiry probing the operations of the Financial Sector Adjustment Company (FINSAC) during the financial sector crisis of the 1990’s.
The hearings are being held at the Jamaica Pegasus Hotel in New Kingston.
Mr. Hutchinson told the Enquiry that in 1995, he borrowed $1.6 million from the National Commercial Bank (NCB) to refinance an existing overdraft facility at the bank.
He said interest grew on the loan because at times when he withdrew money from his account, he would exceed the limit of the overdraft amount and by 1998, the loan stood at $3.8 million.
Mr. Hutchinson said that when he realized that the loan was increasing rapidly, especially with the interest accrued, he wrote to NCB requesting that they cap the loan at $4.5 million.
He told the Enquiry that in 1999, he received a letter from NCB which said his debt had been sold to FINSAC and his balance was now $5.5 million.
Mr. Hutchinson testified that through his attorneys he continued to negotiate with NCB to put a cap on his loan which they eventually agreed to in March 2001.
He said he was given a July 31 deadline.
Mr. Hutchinson said the Ministry of Education had indicated an interest to purchase two of his 19 acres of land at a cost of $3.5 million.
He said his intention was to use the money to pay on the debt in addition to $700,000 he had paid earlier.
The negotiations took seven years during which time his debt rapidly increased from $8.1 million in 2001 to $12 million in 2008.
He said his efforts to sell other lots were flatly refused by the Jamaica Redevelopment Foundation, to which his debt had been sold in 2002.
Lecturer tells FINSAC Enquiry about how his loan ballooned
Anthony Hutchinson, giving evidence at the FINSAC Commission of Enquiry. Farmer and accounting lecturer Anthony Hutchinson, who was once part owner of 16 acres of land in May Day, Manchester, again took the witness stand at Thursday’ sitting of the Commission of Enquiry probing the operations of the Financial Sector Adjustment Company (FINSAC) during the financial sector crisis of the 1990’s.
The hearings are being held at the Jamaica Pegasus Hotel in New Kingston.
Mr. Hutchinson told the Enquiry that in 1995, he borrowed $1.6 million from the National Commercial Bank (NCB) to refinance an existing overdraft facility at the bank.
He said interest grew on the loan because at times when he withdrew money from his account, he would exceed the limit of the overdraft amount and by 1998, the loan stood at $3.8 million.
Mr. Hutchinson said that when he realized that the loan was increasing rapidly, especially with the interest accrued, he wrote to NCB requesting that they cap the loan at $4.5 million.
He told the Enquiry that in 1999, he received a letter from NCB which said his debt had been sold to FINSAC and his balance was now $5.5 million.
Mr. Hutchinson testified that through his attorneys he continued to negotiate with NCB to put a cap on his loan which they eventually agreed to in March 2001.
He said he was given a July 31 deadline.
Mr. Hutchinson said the Ministry of Education had indicated an interest to purchase two of his 19 acres of land at a cost of $3.5 million.
He said his intention was to use the money to pay on the debt in addition to $700,000 he had paid earlier.
The negotiations took seven years during which time his debt rapidly increased from $8.1 million in 2001 to $12 million in 2008.
He said his efforts to sell other lots were flatly refused by the Jamaica Redevelopment Foundation, to which his debt had been sold in 2002.