Throwing out the challenge last week, he also said the transaction time should be less.

“We cannot have persons waiting for months to have access to a loan,” Ali declared, maintaining the call for the removal of conditions that are stringent for low income earners.

He said, sometimes, the term are greater than those imposed by the Inter-American Development Bank (IDB).

Ali was making a speech when the US$27.9M second Low Income Settlements (LIS2) programme, financed by the IDB, was inaugurated at Regency Suites, Hadfield Street, Werk-en-Rust, Georgetown.

He said in that scheme, the IDB recognised the importance of housing and low income housing and set prerequisites that are realistic.

“I want to send the challenge to the commercial banks to set the conditionalities and conditions that are realistic in the context of low income earners so that they can make the loans and resources accessible to them,” Ali reiterated.

He said from the Government end, the Administration is already trying to make sure that the equity value of the assets, that are going to be used to acquire the loans, is significant.

“For example, a low income earner will pay approximately $92,000 for a house lot and the cost of developing that lot is about $550,000. So the equity value is far in excess of what that low income earner would pay for that lot. This is an added benefit from the programme,” Ali pointed out.

He also praised the Government for making a $2 billion revolving fund specifically available for low income housing and development.

“It is more access to resources, easier access to resources to ensure that persons move from land ownership to home ownership,” Ali posited.

LIS2 is expected to be executed between 2009 and 2013 to benefit approximately 10,000 home owners.

Ali said, at the Government level, as many lots as desired can developed for the purpose but there are other critical elements in the development to create the enabling environment.

He said those include the relevant infrastructure, the right socio-economic conditions and cultural environment and developmental agenda.

“These are fundamental questions when we speak about low income housing development,” Ali contended.

DEFINITION
“The concept or the term low income sometimes gives a narrow definition that we are speaking about poverty and you are talking about removing poverty or addressing poverty issues. Yes, fundamentally, it is this, but more importantly, it is presently to give persons who are vulnerable and within a certain income level an opportunity to build and develop themselves out of that strategy for improving their livelihood and living conditions,” he elaborated.

The Minister gave the assurance that low income in this context is presenting a new opportunity and vision to persons.

“…persons who live in a particular bracket and I will not say bracket defined by income alone, because in the document, vulnerable is a very important concept and when we speak about vulnerable, we speak about persons who are exposed to various societal ills in a vulnerable environment or situation in which they live,” he explained.

In this regard, Ali said the Government of Guyana must be complimented for developing and creating that enabling environment.

He reminded of the announcement, by Minister of Finance, Dr. Ashni Singh, that the newly approved ceiling for low income housing loans is $3M, 50 per cent more than the previous maximum of $2M.

Ali said the decision, which became effective immediately, relates to borrowings under the low income housing programme that Government established in 2001.