National Home Mortgage Program Available for First Time in Haiti
- Wednesday, July 20, 2011 11:33 AM
PORT-AU-PRINCE, Haiti - The National Bank Credit (BNC), in conjunction with the People's Bank of Haiti (BPH), officially commenced on Tuesday, Kay Pa'm, the first national mortgage program in Haiti.
At the Karibe Hotel in Port-au-Prince, the President of the Republic, Michel Martelly, Vice-Chairman of the BNC, Jean-Philippe Vixamar and Governor of the Bank of the Republic of Haiti (BRH), Charles Castel ushered in the new program in the country.
The new service, undersigned by the BNC, makes mortgages available for the vast majority of citizens of Haiti by providing access to fixed rate, affordable and long period loans to be used for the purchase of land and housing supplies from within the country.
The exponential population growth of Haiti and the chronic shortage of adequate housing are major problems that governments in recent decades found no solution, Le Nouvelliste , noted.
Even before January 12, 2010, there was estimated over one million units of housing needed in metropolitan Port-au-Prince, where makeshift houses and slums flourished like mushrooms.
This precarious situation has worsened following the January 12, 2010 following the earthquake that destroyed 300,000 homes and caused more than 1.5 million to become homeless.
This bleak picture of the Haitian reality did not leave indifferent certain personalities and institutions of the country who have worked hard to find a solution to this problem.
The Dream of Guiteau Toussaint
"In this regard," wrote Cyprien Gary, "it is worth mentioning the late President of the Board of Directors of the BNC, Guiteau Toussaint, whose shadow hovered Tuesday in assistance to the launching ceremony of Kay Pa'm."
A minute's silence was observed in memory of this visionary who died tragically on the eve of the launch of Kay Pa'm. The Vice-Chairman of the BNC, Jean-Philippe Vixamar presented the program to the realize the dream of Guiteau Toussaint and his contribution to the development of the national economy by facilitating the provisioning of loans for guaranteed, safe and adequate production of housing, residential and commercial.
In spite of constraints of all kinds along the route to mortgages in Haiti, Jean-Philippe Vixamar now the leader of the BNC said that Kay Pa'm is the solution to the problem of centralization of activities in the metropolitan area of Port-au-Prince.
Vixamar says it will alleviate the high density of population in the cities, shantytowns and uncontrolled construction. It will replace non-compliance construction with construction standards in the country.
In remarks at the head of state, Vixamar said for the housing sector,
"the NLC and BPH are ready to assist the Haitian government. The home loan program Pa'm Kay intends to provide meaningful answers to this challenge. Thus, through this program, the BNC and BPH intend to finance houses to decent housing for public servants, executives of private sector business and socio-professional living in this country."
"This loan program takes into consideration income level of customers and their ability to repay over a long period. BNC BPH and fund both home repair home destroyed by the earthquake, expansion or rehabilitation of existing housing that the acquisition and construction of new homes."
The Mortgate Plan
Kay Pa'm a housing loan program for the benefit of public officials and individual clients over a period of 30 years or 360 months.
This type of housing credit which is financed jointly by NBC and BPH up to 4 billion HTG ($100 million US) at a fixed rate of 8% per year over the first 10 years. The rate will be adjusted according to changes in interest rates in the money market but the client's initial contribution will be very small or even zero in some cases.
The amount of credit awarded through this program ranges from 85% to 100% of the total cost of the project to be funded.
The program targets the entire territory of the republic as a clear signal sent by the BNC in its goal of decentralization.
Eligibility of the program: Kay Pa'm is open to any individual not on the list bad debtors of the banking system, being in the age limit from 18 to 65 years with at least three years in the public service or having a stable job in a private company or a liberal profession for three years with a regular monthly income and can be sufficient proof of its capital, if any, holding a title to land.
Expenses: monthly repayment should not exceed 40% of gross wages of the employee or revenues couple.
Regarding the primary conditions of eligibility: Kay Pa'm assures funding for the primary residence. It does not finance commercial or industrial units.
In addition, the customer must not be on the list of bad debtors in the system, according to the explanation of the NBC vice president who considers Kay Pa'm as an act of faith in the country and a bet on the future.
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Source: Le Nouvelliste