Edmond Campbell, News Coordinator

Danny Roberts, vice-president of the Confederation of Trades Union and former board member of the National Housing Trust (NHT), says a proposal to increase interest rates to existing mortgagors of the NHT would have a devastating impact on beneficiaries.

He contended that such a move would severely affect the NHT's ability to provide future mortgages to potential homeowners.

"It would lead to a massive defaulting of mortgage payments, and eliminate the prospect for thousands of Jamaicans to own their own home," Roberts warned.

Prime Minister Bruce Golding, speaking to journalists on February 5, indicated that an increase in interest rates was an option that the NHT was considering at this time.

He chastised the People's National Party (PNP) administration for what he said was its political decisions, which have placed the NHT in a precarious position.

Half a billion dollar deficit

The proposed move comes against the background of a half a billion dollar deficit faced by the NHT for the current fiscal year. The company had recorded a $2 billion deficit for the previous year.

In a Gleaner interview yesterday, Roberts argued that with inflation running at close to 17 per cent for the calendar year, a hike in interest rates would hurt beneficiaries.

edmond.campbell@gleanerjm.com