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Housing Finance’s pool fund hits sh30b

By Vision Reporter

Added 9th April 2007 03:00 AM

FINANCE minister Dr. Ezra Suruma has written to Parliament seeking approval to use sh30b to capitalise Housing Finance.

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FINANCE minister Dr. Ezra Suruma has written to Parliament seeking approval to use sh30b to capitalise Housing Finance.

By Mary Karugaba
FINANCE minister Dr. Ezra Suruma has written to Parliament seeking approval to use sh30b to capitalise Housing Finance.

This follows President Yoweri Museveni’s letter to Suruma directing him to use the company’s pool house fund that had accumulated to sh30b for recapitalising the company.

“These funds should be used to re-capitalise the company to enable the bank extend mortgage facilities for the youth to acquire housing and other commercial building facilities,” Museveni wrote.

The President said Housing Finance’s recapitalisation request was part of his 2006 campaign pledge.

Suruma said with the acquisition of 45% shares in Housing Finance, the Government is required to directly capitalise the company.

The sh30b constitutes about 40% of the company’s mortgage assets.

In 1994, the Government adopted a policy of divesting itself of the responsibility of providing housing for civil servants and ownership of pool houses.

It also decided to promote ownership of houses by civil servants by facilitating sitting tenants to purchase and acquire the pool houses in addition to facilitating the public to acquire houses.

Housing Finance was appointed the agent to administer and participate in the implementation of the policy.

Housing Finance’s pool fund hits sh30b

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