Minister for Works and Housing, Samuel Atta Akyea has expressed the desire to re-establish the now defunct Bank for Housing and Construction to provide the funds for the housing sector.
In the year 2000, the once buoyant Bank for Housing and Construction (BHC), which provided funding at affordable rates to real estate developers, was liquidated by the Central Bank following heavy losses it made.
The bank’s liabilities had exceeded its assets, affecting its ability to satisfy the capital adequacy and minimum capital required under the banking law.Industry players have however called for a revival of the Bank, saying the lack of access to affordable capital is crippling the real estate sector. Hon Atta Akyea says the revival of the bank will be best for the sector.
“I believe that whatever happened to the defunct bank for housing and construction they should bring it back and we’re going to find out why it collapsed. And that is how we will put together the memo”.
He believes the Bank can be brought back to provide this capital if the reason for its collapse is properly investigated.
“We should find out why it collapsed and why we think it will not collapse this time around. And when we have that bank then we have what we call realistic mortgage arrangements in which the poorest man in town can spend 30% of his income and own a house 25 years in the future. The interest rates of the banks are not like the commercial ones but is pegged for the purposes of giving respite and relief to the worker”