Housing Authority borrowed $628M over 6 years
January 30, 2019 4:28 pm
The Housing Authority borrowed $628 million over the last six years to fund its capital projects and assist Fijians with home ownership.
General Manager Finance, Poasa Verevakabau says the borrowing bill for the next three years is expected to average over $500 million.
Verevakabau says the Authority was established with the aim to assist low-income earners to own a house and the borrowing bill proves it hasn’t been an easy task.
“Our business operation doesn’t rely on the grant from the government only, we generate income internally to sustain the authority operation. We have borrowed funds from the Exim Bank of China, Bonds, and Reserve Bank loans.”
Verevakabau says the mortgage portfolio stands at $91 million as of last month, with a non-performing loan of $7.6 million.
He adds the Authority has taken on board social policies to assist Fijians who are unable to make repayments.
From 2011 to 2018, the Authority assisted about 400 customers by forgiving a debt of $6.8 million.
He says despite a heavy borrowing and mortgage portfolio, the Authority has been able to earn profits.
“From 2015 we made a profit of $2 million, 2016 a profit of $1.4 million was earned, in 2017 the Authority achieved $1.7 million and in 2018 we made profits of $1.4 million.”
Since 2013, the government and Reserve Bank allocated $47 million to the Authority of which $25 million has been used.