Gov't gives details on $5k housing bonds

Finance Minister Colm Imbert today said Government's promised housing bonds will soon be available for public investment.

The bonds will be available in multiples of $5,000 and Imbert said Cabinet has approved $1 billion for these bonds.

Speaking at the post-Cabinet press briefing, Imbert said those who chose to invest in the bonds will be allowed to use them for part payment on houses constructed by the Housing Development Corporation (HDC).

He said people will be able to purchase bonds in amounts depending on their means and, if they qualify for HDC housing, can redeem or cash in these bonds for a reduction in the purchase price and will get preference in the allocation of houses.

He stressed that the bonds were meant for individuals and not corporations.

The bonds will have a life of five years and will earn interest at a rate of 4.5 per cent per year

Imbert said the initiative will give the HDC critical and urgent cash it needs to get on with construction and will allow the corporation to accelerate their programmes.