By MATTHEW VARI
PRIME Minister Peter O’Neill called on all Papua New Guineans who are earning a living to take advantage of the recently launched First Home Ownership Scheme that the government has partnered with Bank South Pacific to make housing loans available at a fixed low interest rate.
The loan partnership will see the government make K200 million through the bank for citizens to borrow up to K400,000 that can be repaid over 40 years at 4 percent interest rate.
“I believe very strongly that it will significantly change how we treat the welfare of the people of our country into the long term,” the PM said.
“I want to thank the bank of south Pacific who came up with the idea that after so many failed housing schemes that successive governments of the past since 39 years of independence.”
“I myself learnt the hard experience of the public service housing program, where we appointed a contractor, we paid the amount of money and the houses were not delivered.”
“Out of that experience I thought that there must be a better way we can accommodate that with a scheme that is going to cover all Papua New Guineans, where an affordable housing scheme can be introduced more conveniently.”
He referred to overseas models where governments were assisting people to own their homes through similar schemes
“When I saw the models that I have been experienced in seeing in Singapore and many other places in the region- there are schemes already in existence where long term loans are given to citizens so that they can build affordable houses.”
“The main thing is about the affordability of repaying those facilities that are being provided to them.”
He said the majority of citizens in the urban areas were having a hard time to afford proper housing- all hard working yet they were living in the settlements on the outskirts of the city.
“When we are busy and drive around and look around our community, there are many examples where many of our people are living in settlements who do not deserve that.”
“They are hard working men and women- who may be earning lower level of income but we must have a scheme that is going to provide for them.”
“Where depending on your affordability you can borrow up to K400,000 at a 4 percent interest rate over 40 years, that’s is by far the cheapest housing scheme that can be found anywhere in the world.”
He said that the partnership with BSP was done on a commercial term, and was not done because the government is funding it.
“Government is just providing funds so that they can borrow it, not even security- we are just making funds available where the bank is going to lend to our citizen.”
“Every years we are trying put in K200 million rather then just wasting money everywhere, we will give it to the bank to make sure it lends to as many Papua New Guineans as possible.”
“It will be unfortunate if Papua New Guineans are not taking advantage of this, I urge everyone of you who are earning a salary, those who have got families, they must have decent housing to have a better life.”
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