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New estates’ owners may get property debt free

first_img$30B GuySuCo bond– Former minister says cronies lined up to purchaseAs the controversy surrounding the $30 billion Guyana Sugar Corporation (GuySuCo) bond continues to take centre stage in the debate about the sugar industry, former Minister Anil Nandall has added his voice by saying the next owners of these closed sugar estates would get them debt free.Nandall strongly feels the bond was particularly acquired so as to liquidate the debts of the Corporation, because there is a list of “cronies” who are ready to purchase the estates.“What they are doing is to liquidate the indebtedness of GuySuCo, so that the cronies whom they have put to buy the industry will buy it loan free,” he stated.The former minister said his party, the People’s Progressive Party (PPP), through Opposition Leader Bharrat Jagdeo, has long questioned the reason behind theFormer Attorney General Anil Nandlall$30 billion bond.He said many questions remain unanswered as the Corporation and the Unit seem to be at loggerheads over the spending of the bond and the plans for its repayment.Nandlall recalled that President David Granger had stated that over $32 billion had been spent to service the sugar industry in the last two and a half years since the coalition had taken up office; but he said there is nothing to show for it, because the industry has been significantly downsized and thousands of sugar workers are still owed their severance.“When we (PPP) were in Government, we spent about $4.5 billion per year in subsidies over 2-3 years. We kept all the estates grinding, and not a single person was sent home,” he explained.Jagdeo has said he had managed to raise this issue with the President during a recent meeting, and he had warned the President about the extra burden the nation would have to shoulder in less than two years, all because of a bond whose purpose the authorities seem indecisive about.“Granger is still sleeping, because I told him this in my conversation with him. In the meeting that I had with him, I said, ‘You are going to pay over $2B in a year and a half for not using the money,” Jagdeo said he told the President it is unwise to have the money gaining interest.“We calculated the interest it (the bond) will accumulate in a year and a half, because I am saying that that is how long it might take, even if you move fast to get a long-term project,” he said.Jagdeo said it would take that time to go through the feasibility study: the design, the contracting, the design of a cogeneration plan etc.“I told them that taking all the money at once and sitting on it for a year and a half at 4.75 per ent interest will be over $2.2 billion,” Jagdeo added.But the SPU has responded to the criticisms which seek to suggest that the bond would be wasted, and that it was acquired at an unreasonable rate.According to the SPU, the terms of the bond are five years, since it is expected that the proceeds of the land sale for GuySuCo would be used to repay the facility, and the National Industrial and Commercial Investments Limited (NICIL) wanted to secure the lowest possible interest rate.“It is therefore important to correct several inaccurate statements being made by the former President of Guyana, Bharrat Jagdeo, regarding the bond,” a statement from the SPU has said.NICIL has said it had released over $2 billion to GuySuCo, but there are strict rules how the monies are to be spent. The money was supposed to buy two co-generation plants, upgrade the three factories — Albion, Blairmont and Uitvlugt — to produce plantation white sugar, contribute two years of general ongoing operational costs, and expand storage and packaging facilities.The banks that loaned GuySuCo the bond have objected to GuySuCo misusing the funds it received to pay a debt at another bank that did not even participate in the bond deal.last_img read more

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The 20 Percent Downpayment A Thing of the Past

first_imgThe 20 Percent Downpayment: A Thing of the Past? in Daily Dose, Data, Featured, Headlines, News Genworth Mortgage Insurance recently released their inaugural report on first-time homebuyers. Source data dates back to 1994 and analyzes over 20 million records. The survey tracks home sales to first-time homebuyers on a monthly basis, publishes quarterly, and compares the data against national housing market indicators. It is also singles out and identify homebuyers that purchased their home using a VA loan, USDA loan, FHA loan, or with a low downpayment coupled with mortgage insurance instead of the traditional 20 percent downpayment that has historically been required. The report found that this demographic accounted for 424,000 single-family home sales, or 38 percent of the total homes sold in Q1 of 2017. This amount is an 11 percent increase from Q1 2016, and the most since 2005.It also found that first-time homebuyers were the driving force behind the expansion of the housing market between 2014 and 2016, making up 85 percent of total sales and averaging an increase of 260,000 sales per year, two years in a row. During that time period, FHA loans were used 80 percent of the time to secure a mortgage—around 730,000 loans. An estimated 510,000 sales used private mortgage insurance to purchase their home, further reducing the number of homes obtained through a traditional 20 percent downpayment. In order to fully understand and predict the first-time homebuyer market, the report also tracks repeat homebuyers. In 2016, repeat homebuyers accounted for only 63 percent of home sales, the lowest since 2000. This is attributed to lower asset accumulation, preventing people from upgrading their living situation. In a statement released with this new data, Tian Liu, Chief Economist for Genworth Mortgage Insurance, said, “[First-time homebuyers’] impact has already been felt in falling inventory and rising home prices, and we expect them to increasingly drive growth to businesses most exposed to this market segment …  [b]y studying this group more closely, we hope to bring a better understanding about the many low down payment options available to help first-time homebuyers reach homeownership sooner.”The report for the second quarter of 2017 will be released August 22, 2017. Sharecenter_img FHA loans First-Time Homebuyer Genworth Mortgage Insurance Corp. Mortgage Insurance USDA loan VA loan 2017-06-09 Staff Writer June 9, 2017 706 Views last_img read more