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Bank of South Pacific (BSP) with the support of the National Government is set to make home ownership more affordable and easier for all Papua New Guineans under the proposed First Home Ownership Scheme (FHOS).
BSP Group CEO Robin Fleming announced that the PNG Government has approached BSP offering support to the Bank to enable greater access to longer term home loan funding, reduced interest costs and fees to be specifically allocated for first time owner occupied home buyers to build their own home. Increased funding to this sector will provide further economic stimulus to the economy through increased construction and employment opportunities.
The PNG Government will provide an initial capital investment of K200 million with BSP through the 2015 National Budget. Under this exciting arrangement the National Government is offering to provide the Bank initial funding of up to K200 million, as a deposit which will be available to support initiatives by the National Government and the Bank to improve access to credit for all Papua New Guinean first home buyers to construct their own homes.
It is intended that future capital investment will be available once the program is established to provide further funding depending on the success of the FHOS with up to K400 million to be allocated over a 5 year term. Initially the housing loan will be provided at a fixed interest rate of 4% subject to current market conditions prevailing with repayments terms up to 40 years available.
Monthly Loans repayments will be reduced due to the longer terms available and attractive fixed interest rate making the FHOS more accessible to all Papua New Guineans.
The term of loan for those who are eligible will be up to a maximum of 40 years and this FHOS will be available to all Papua New Guineans for owner occupied homes with the loan terms providing flexibility to include the support of family members to assist with loan repayments.
Mr Fleming said BSP understands the process of obtaining finance for a home loan can be a complex, time consuming process and BSP is committed to providing a streamlined product and process including fee structure and flexibility under the FHOS that will meet the objectives of both the National Government, BSP and Papua New Guineans to own their own home.
“The purpose is to assist achieve home ownership in the current market. BSP is privileged to work with the Government on this, as we firmly believe in creating wealth, hope and opportunity for all Papua New Guineans,” Mr Fleming said.
Ends
About BSP
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
- 10 Premium Service Centres
- 40 Sub Branches
- 226 Agents
- 297 ATMs
- 11,702 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
FOR MORE INFORMATION – CONTACT
Barney Pondros | PR & Communication Manager | Telephone: 305 7877 | Email: bpondros@bsp.com.pg
Julie Fraser | Head of Marketing & PR | Telephone: 305 7141 | Email: jfraser@bsp.com.pg
Website: www.bsp.com.pg
