Dear Editor,
I have given deep thought to the latest announcement by President Irfaan Ali, made on Sunday, May 18, 2025, at a ‘Labour Brunch’ held at State House, regarding the reduction of mortgage interest rates by 5% for those borrowing up to $30 million. This announcement was subsequently reported by Demerara Waves under the headline, ‘NBS maximum mortgage now GY$30 million – Pres. Ali.’ Let me be clear; any relief that assists our people, particularly the ordinary citizen, is welcome.
However, it is evident that with elections approaching, the Government is pulling out all the promises from its playbook to entice potential voters. What the PPP/C may not fully realize is that many Guyanese have had enough of their empty promises, ineptitude, corruption, and nepotism, especially with regard to the lack of benefit from the nation’s patrimony. As a result, no amount of enticement will sway our people; they are tired of the PPP/C.
I am struggling to understand whether a proper study was conducted before this announcement, particularly to assess the impact this new initiative will have on the New Building Society (NBS). NBS, like other financial institutions such as RBL, GBTI, Citizens Bank, and Demerara Bank, operates with overhead expenditures covered by profits. Has the Government considered how this change will affect NBS’s financial sustainability?
It appears that the Government has some level of involvement in the operations of NBS. Why do I say this? NBS is governed by a Board of Directors, whose responsibility is to ensure that all financial operations are aligned with the standards set by the Bank of Guyana, just as other banking institutions are required to do. However, when President Irfaan Ali states that “I have instructed the Minister of Finance…,” this raises significant questions. Anyone, without being a financial expert should find this concerning and begin to question such a move by the Executive Branch.
For the sake of transparency, it would be helpful if NBS executives publicly clarified:
- Whether a study was conducted to determine the sustainability of this initiative?
- How will it affect NBS’ operations? and
- How any resulting shortfall will be absorbed?
While such announcements may sound appealing, the public would benefit from knowing how many individuals earning at the minimum income level have been approved for mortgage loans, particularly considering the mortgage rate changes between August 2020 and April 30, 2025.
Furthermore, the Government should explain why similar announcements have not been made for other financial institutions such as RBL, GBTI, Citizens Bank, Scotia Bank, and Demerara Bank, since many citizens also borrow mortgage loans from these banks.
Editor, I sincerely hope that the competent authorities will address the questions raised in this letter.
Yours truly,
Annette Ferguson, MP
