Papua New Guineans have been urged to embrace the newly launched First Home Ownership Scheme (FHOS).
When officially launching the FHOS this week, Prime Minister Peter O’Neill called on Papua New Guineans to participate in the FHOS, which is being facilitated through Bank South Pacific (BSP).
“Every year, the government will be providing K200,000,000 to BSP to ensure the bank lends to as many Papua New Guineans as possible” said PM O’Neill.
“I urge every Papua New Guinean who has a salary, who has a family, and who have kids to think about their children’s future. They must have decent housing where they can be looked after well, have a better quality of life, better education, better health care – these are some things that will improve because of a better housing scheme.
It will be unfortunate if Papua New Guineans are not taking advantage of the FHOS”, he added.
His comments were reiterated by BSP Group CEO Robin Fleming.
“The shortage of quality and affordable housing in Papua New Guinea (PNG) has been recognised by the Government of Papua New Guinea as having a fundamental impact on many Papua New Guineans”, said Mr Fleming.
“BSP believes that home ownership is a means for ordinary Papua New Guineans to establish an asset base that can be passed onto their children. So it is with pleasure that we here today with the Prime Minister to announce this joint initiative, the First Home Ownership Scheme,” he added.
Through the support of the National Government, steps are being taken to establish a long-term deposit base which addresses liquidity and market risks associated with long-term lending such as housing finance. As a result of these actions, BSP will be able to provide housing loans to approved first home borrowers, over a 40 year term and at an interest rate of 4%pa.
Both the National Government of Prime Minister O’Neill and BSP believe that the FHOS will help address housing issues and offer wealth creation opportunities for many Papua New Guineans.
The FHOS is not a guarantee facility. It is a product that will be offered by BSP adopting a commercial approach, albeit over a much longer loan term and at a somewhat concessional interest rate. The availability of affordable land and housing packages is also essential and this will require the support of the Government and private sector participants from the housing industry.
BSP’s involvement in the FHOS is another example of the Bank’s approach to addressing the needs of Papua New Guineans. Not only has BSP taken banking services to over 40 Branch and 44 rural sub branch locations, the Bank also continues to provide support for health, sporting, cultural and community initiatives through various sponsorships.
Our Commitment to PNG is growing. The BSP Group employs 4000+ people across PNG and the South Pacific and services more locations and provides more ways of convenient banking in PNG than any other bank.
- 42 Branches
- 13 Premium Service Centres
- 42 Sub Branches
- 226 Agents
- 301 ATMs
- 13,000+ EFTPoS
With millions invested in new facilities and technology to make banking easier, new improved services on the way and a growing network of conveniently located banking agencies, Express and Priority Banking and Premium Lounges, our commitment to PNG is stronger than ever.
And so is our interest in the future with our continued and growing investment in a diverse range of community projects and health and well-being programmes to designed to help others grow.
- 33 The number of community projects delivered in PNG in 2013
- 165 The number of individual community projects in PNG from 2009 – 2013
- K3.6mil Amount BSP has invested in communities in PNG from 2009 – 2013
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