By Josiah Williams
PPP General Secretary, Dr. Bharrat Jagdeo, commends the New Building Society (NBS) for its commitment to offering low mortgage interest rates to home builders, dismissing claims of profit loss.
Dr. Jagdeo’s remarks come in response to a recent article in the Kaieteur News alleging that NBS suffered a half-billion-dollar profit loss due to low mortgage rates, with non-performing loans becoming a concern.
However, Dr. Jagdeo asserts that NBS’s primary goal is to provide affordable mortgages to citizens, not solely for profit, and emphasizes their success in fulfilling this mission.
The PPP General Secretary refutes claims made in the article, highlighting that NBS’s decision to provide refunds to 14,000 mortgage holders was not a loss but a fulfillment of their mandate.
He clarifies that President Ali did not intervene to direct NBS to lower mortgage rates further, contrary to the article’s assertions.
Dr. Jagdeo contextualizes NBS’s efforts, noting that in the 90s, mortgage rates were around 40%, but efforts to reduce inflation and stabilize exchange rates significantly lowered this figure.
Regarding concerns about non-performing loans, Dr. Jagdeo labels the article’s claims as ‘dangerous’ and asserts that there has been a reduction in non-performing loans across the banking sector.
He attributes this to strengthened banking regulations, particularly in anti-money laundering and countering financing of terrorism policies.
Dr. Jagdeo reaffirms the government’s commitment to urging commercial banks to lower mortgage rates to facilitate homeownership.
Additionally, he highlights government initiatives to allocate land to citizens as collateral for building homes.
In conclusion, Dr. Jagdeo’s remarks aim to dispel misconceptions about NBS’s operations and highlight the government’s efforts to support affordable housing initiatives.