THE Guyana Geology and Mines Commission yesterday signed a G$3B Loan Agreement with the Central Housing and Planning Authority (CH&PA) to help develop the housing sector.Both parties said in a joint statement issued yesterday that the signing follows CH&PA’s submission of an investment proposal to the Commission earlier in the month requesting a loan in the sum of G$3B for a period of one year.

According to the statement, “The Board of Directors of the Commission met and deliberated on the proposal submitted, and it was noted that the interest rate being offered by CH&PA was 5%, which was 3.2% more than what was currently being earned via the commercial banks and other investment options open to the Commission.
“More so, the loan is for a period of one (1) year, with interest calculated using the reducing balance and in the event of CH&PA fails to repay the entire amount by the deadline, the Commission has the right to increase the interest rate to 7%.”
It said that having concluded that the proposal was “financially prudent and sound,” the GGMC Board “agreed to the granting of the loan, subject to the terms and conditions enshrined in the Loan Agreement and any additional guarantees required by the Commission.”
The CHPA project, the statement said, “is pivotal to the realization of the Government of Guyana strategic target of allocating 30,000 lots under the Adequate and Affordable Housing Programme in order to maintain momentum in the provision of service land in several areas on the East and West Demerara.”