The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PERSONS who applied for the government’s mortgage relief programme, but were turned down, now have an opportunity to be reconsidered, State Minister of Finance Michael Halkitis said yesterday.

Since the programme officially began two months ago, Mr Halkitis said the Ministry of Finance received 414 
queries for assistance but to date only 139 of them fulfil the requirements. The remaining 275 are still being processed.

The Minister added that the government will also look at adjusting certain aspects of the initiative to meet individual needs.

Officials have set a March 10, 2013 cut off date for the mortgage relief progamme.

“We have put in place,” Mr Halkitis said, “an appeals panel for persons who were told by their banks that they did not qualify. People who might have applied and feel as though they should have been considered and approved can contact the Ministry of Finance and indicate that they would like their case to go before the panel.

“We are also in close discussion with the Clearing Bank Association to see how we can tweak particulars of the relief assistance programme.”

The guidelines to be approved are: owner occupied primary residential properties only, including owner occupied duplexes, not vacant lots or revenue generating/investment properties; mortgages originating prior to January 1, 2009; outstanding mortgage principal amounts, not exceeding $500,000; acceptable credit history prior to June 30, 2008 and loans that are delinquent due to documented financial hardship caused by involuntary unemployment or chronic illness.

The mortgage relief programme, documented in the PLP’s Charter for Governance has been heavily criticised by the FNM which believes that assistance will not be offered to the full scope of persons needing help.

The plan faced widespread backlash from the public even before its implementation. International agencies have also weighed in on the scheme saying it would not boost the Bahamian economy.

Wall Street credit agency Moody’s said the mortgage relief programme would undermine efforts to have the country’s $4 billion debt decreased. The Agency has also said that there could be a further downgrading of the nation’s sovereign credit rating.

Prime Minister Perry Christie in September said the programme could benefit 1,100 people. However, opposition leader Dr Hubert Minnis said his estimates were inflated as only 700 Bahamians could be assisted.