Banks urged to reduce interest rates, liquidity

Jun 05, 2011 News

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Housing officials, construction companies and other stakeholders during the launching at the Princess Hotel, Providence, EBD.

…as ‘International Building Expo Two’ launched

By Leonard Gildarie

Government has announced that it is getting ready to distribute 3,500 more house lots before year end with 1,000 at Eccles being allocated as early as next week.
The announcement was made Friday evening at the Princess Hotel, Providence, East Bank Demerara (EBD) by Housing Minister Irfaan Ali, during a glitzy launching of the country’s second International Building Expo.
Addressing representatives of several banks, hardware suppliers and construction companies, Ali also disclosed that 300 more house lots at Herstelling, EBD, will be ready for allocation in as little as a month.
Private developers who have been allocated parcels of lands between Republic Park and Providence have promised to have another 1,000 house lots ready in a year, he said.
The launch of the exhibition – which is slated for July 29-31 at the National Stadium, Providence – attracted over 60 local and foreign companies.
With booming construction playing an increasingly critical role in the economy and labeled as one of the fastest growing sectors, Ali warned that several house lots which are being prepared for remigrants will come with conditions. More than 1,000 applications have been received already from overseas persons.
According to the Minister, Government will be placing a minimal amount to be invested to build homes…the proceeds of which will further excite an already robust sector.
Last year alone, over 2,500 applications for new homes were approved and assuming that 50 per cent were built, more than $9.5B would have been invested via mortgages and personal cash for new homes.
Building codes
With some 500 applications approved in the city for the construction of new buildings, the official also signaled an intention by government to review the building codes. Problems with parking and new high rises will manifest. Already, approval has been granted for the building of a parking lot in the heart of the city.
The Minister also announced an ambitious plan to make the exposition, which attracted over 30,000 visitors last year, the best in the region and Latin America within five years. Stakeholders, including the construction companies and banks, should utilize the opportunities from the exposition and “dig in”, he emphasised.
Citing figures which clearly point to continued growth, the Minister challenged commercial banks and the New Building Society to think about lending more, in the face of high liquidity in the system.
The expo is geared towards showcasing products and services being offered by construction and hardware companies, banks and other key stakeholders.

The Housing Ministry on Friday, last, launched its second International Building Expo which is slated for July 29-31 at the National Stadium.

Presidential Award
This year, there is a Presidential Award for an innovative product or service that will enhance construction.
Last year, the construction sector grew by 10.8 per cent, at the same time contributing the same figure to the Gross Domestic Product (GDP).
In 2010, also, credit to the private sector for mortgages amounted to $33.8B, a 23 per cent over the 2009 figures.
“This has been unprecedented in Guyana and was helped in large part by the distribution of house lots for residential purposes,” said the Private Sector Commission’s Ramesh Dookhoo.
According to Dookhoo, since 1994 more than 86,000 house lots have been distributed with homes already built on over 70 per cent of them.
The first housing expo in 2010 was a success, with exhibitors reporting dramatic increases, he said.
Bank rates
However, he too had some advice for banks.
“This is heartening but it must be said that there is room for the commercial banks to further reduce their lending rates and make access to finance even easier for the populace.”
Like the Minister, he pointed to the opportunities offered for linkages within the region.
Commending this newspaper for its series of articles on housing issues, Dookhoo also expressed concern over incidents where homeowners have been ripped off by contractors.
According to Clinton Williams, President of the Guyana Manufacturing and Services Association (GMSA), there is clearly a need for technical skill within the construction industry…a need that is being filled by several ongoing technical programmes.
He urged Government and stakeholders to explore the idea of low cost housing that is energy efficient as well, and pointed out that here is a need to “do something different” along the lines of sustainable practices.
‘International Building Expo Two’ is being held under the theme “Bridging the Gap- Transforming Guyana”.
A video and a jingle of the housing developments were also launched Friday evening.

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