BSP loans out K140mil for housing

THE Bank South Pacific has provided about K140 million in loans under its first home ownership scheme, according to goup chief executive Robin Fleming.
Prime Minister Peter O’Neill had told a breakfast meeting with the business community in PNG last week that the scheme was a big success which not many Papua New Guineans were probably not aware of.
“The government has put K200 million in BSP for the first home ownership scheme which is a great success as many locals can borrow money to buy houses,” O’Neill said.
He said people could borrow K400,000 at a four per cent interest rate and repaid over up to 40 years.
“This is really giving the people real opportunity of owning their own homes by borrowing and repaying for a longer period of time, giving lower interest rates which is literally subsidised by the government,” O’Neill said.
Fleming said the bank still had enough funds for those interested in the scheme.
“We still have a reasonably solid pipeline of housing loans to be able to fund,” he said.
He said there were challenges associated with getting those loans.
“Some of the key issues associated with getting those housing loans funded revolves around the Lands Department in terms of getting titles,” Fleming said.
He said the other challenges was the infrastructures associated with developments of the housing projects in Port Moresby in particular.