R1 Billion Fund Established to Close Housing Gap

Pretoria - Teachers, nurses, police and clerks among others, who do not qualify for financial help from banks, stand to benefit from a R1 billion Guarantee Fund.

Speaking after meeting CEOs of the country's financial institutions and major banks on Monday, Human Settlements Minister Tokyo Sexwale said his ministry and the banks had decided to form a team to address the gap in the housing market.

The financial industry was challenged to share their ideas on how to implement the R1 billion Guarantee Fund.

"We encourage innovative ideas in the implementation of the R1-billion Guarantee Fund. Ideas are welcome from financial institutions in identifying the market, and details of the customers and clients," Sexwale said.

The Banking Association South Africa, Managing Director Cas Coovadia welcomed the initiative by the department.

He said the joint team will be formed to bring banking expertise on how to structure the guarantee and identify obstacles including capacity, review of the policy in the legislative and financial environment on housing delivery.

"We welcome the initiative and have committed to work with government to see how best we can to apply this," Coovadia told BuaNews. - BuaNews