The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

FREE National Movement Deputy Leader Peter Turnquest yesterday questioned the efficacy of a government programme to provide mortgage relief to Bahamians.

Despite the failure of a similar programme early this political term, Prime Minister Perry Christie announced plans in May to revive the scheme using $20m over four years.

The original scheme had resulted in only a handful of homeowners receiving assistance.

The Christie administration has since provided little information about its revamped programme, although the Clearing Banks Association has placed ads in newspapers providing instructions to people concerning it.

Michael Halkitis, State Minister for Finance, said yesterday that Hurricane Matthew has not hampered the government’s plans for mortgage relief.

He said the matter would be addressed during a House of Assembly session next Monday.

Yesterday, a Parliamentary representative said he expects a Contractor’s Bill to be dealt with on Monday, adding that mortgage relief and anything relating to it were not on the agenda.

Mr Turnquest said: “The government has this programme that they say is supposed to help more people this time. We haven’t heard as to whether it’s actually helping anybody. “I suspect that it hasn’t because the fundamental issue still remains, which is that mortgage owners in arrears really have no ability to pay if they don’t have a job. I know the problem would’ve been exasperated by the hurricane situation.

“I suspect that the government understands, just like we do, that there isn’t much they can do in terms of intervention. Financial institutions that have signed onto it, if you closely analyse it, aren’t doing much more than what they would ordinarily do for distressed borrowers who come in and make an arrangement. On both parts, the banks and borrower, success rate is less than stellar and we can see that from the Central Bank figures which continue to show basic issues in creating employment opportunities so people can meet their commitments,” he added.

As for what the FNM’s approach to mortgage relief would be, Mr Turnquest said: “There’s no way any government could guarantee the mortgage of any citizen in the Bahamas who finds himself in a difficult situation. We are aware that some institutions have been very inflexible about various aspects about this however. It may be that we need to address that through legislation although I’m in favour of a cooperative solution than punitive action. Ultimately, I continue to believe the way to provide mortgage relief is to ensure people have good paying jobs.”

The government said earlier this year that there are more than 1,000 delinquent borrowers in the Bahamas who could qualify for its mortgage relief programme.

In advertisements that ran in local newspapers earlier this year, the Clearing Banks Association said people who qualify for the programme must agree to restrictions on accumulating further personal debt and must agree to not add further salary deductions to their paychecks.