An incidental player in the mortgage market (cont’d)

By Rawle Lucas On In Business |
LUCAS STOCK INDEX The LSI rose by 0.23 percent in the fourth week of trading in February 2012. Though four stocks traded, only the stocks of Banks DIH recorded any change. DIH climbed nearly 1.5 percent while Demerara Bank Limited (DBL), Demerara Distillers Limited (DDL) and Sterling Products Limited (SPL) all recorded no change. As a result, the index continued to edge up and maintained the positive trend for a third consecutive week.
LUCAS STOCK INDEX The LSI rose by 0.23 percent in the fourth week of trading in February 2012. Though four stocks traded, only the stocks of Banks DIH recorded any change. DIH climbed nearly 1.5 percent while Demerara Bank Limited (DBL), Demerara Distillers Limited (DDL) and Sterling Products Limited (SPL) all recorded no change. As a result, the index continued to edge up and maintained the positive trend for a third consecutive week.

Housing Programme

The structure of the mortgage market for housing is no accident.  The commercial banks and the NBS are competing in the same housing market and offer similar prices for their products as a consequence of government policy.  The housing drive of the administration enabled the mortgage market to be defined by loan size as well.  Changes introduced by the Government of Guyana in 2009 extending the ceiling of low-income mortgages have helped to further define the market structure.  The ceiling for low-income mortgages was G$3 million, but that was expanded to G$8 million three years ago as part of the continued effort by the administration to push its housing programme.  This change enabled the commercial banks to offer mortgages to persons with differing income levels and on the same terms as the NBS.  Both the NBS and the commercial banks