India lauds Guyana’s approach to housing
─welcomes low interest rates
Indian High Commissioner to Guyana, His Excellency, Dr. K. J. Srinivasa has lauded the commitment of the Guyana Government to provide affordable housing for its people, an approach similar to what is being undertaken in his home country.
Dr. Srinivasa made this statement on Wednesday at the signing of an agreement between the Guyana Government and the Indian-owned Bank of Baroda at the Arthur Chung Conference Centre. The agreement designated the Bank as a new mortgage finance company, under section 15 of the Income Tax Act.
The Bank is offering four per cent interest for customers borrowing up to $6 million. Those borrowing between $6 million and $12 million will pay 5.95 per cent interest, while loans ranging from $12 million to $15 million will attract a 6.25 per cent interest.
Dr. Srinivasa said he is especially pleased with the low interest rates offered by the Bank.
The Bank’s Managing Director, Mr. Arun Kumar Gupta had explained Wednesday that the concession offered by the Government has allowed for the low interest rates.
Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, said the provisions under the Act allows the Government to provide certain concessions, including exempting mortgage finance companies from paying corporation tax on the income earned from housing loans.
Dr. Srinivasa said India has a similar programme, where it is encouraging millions of homes to be built with hefty subsidies on interest by Government. The programme, dubbed ‘Housing for all by 2022,’ encourages low and middle-income groups to build their own homes at a subsidised rate.
The Indian High Commissioner said the prospects for Guyana are bright and everyone should take advantage of them.
“I believe that with the upcoming growth in Guyana, the investment will continue to pour and I think now is the best time for anybody who is interested to get their houses to join the fray, cause once Guyana’s success story begins to take off, the cost of housing and land will obviously increase.
This occasion here will lay the seed for further collaboration in the financial sector and I can strongly emphasise here that the expertise that the Indian financial institution has in dealing with such matters will be very helpful. We can share the best practices with the Bank of Guyana and the Finance Ministry here,” he said.
The Government of India is working closely with the Government of Guyana on various projects, including the Diamond to Ogle road, the building of three hospitals in Suddie, West Demerara and Bartica, a ferry for the Northwest District, and collaborations in sugar and agriculture.