• JIS News

    The National Housing Trust (NHT), reported an increase of 12 per cent, or $10.5 billion in total assets for the 2007/08 fiscal year.
    As contained in the NHT’s Annual Report for the period, total assets for the period was $99.5 billion. In addition, housing investments of $74.5 billion accounted for 75 per cent of total assets, up from $62.6 billion or 70 per cent of total assets as at March 2007.
    “The major component of housing investment was loans receivable, which increased by 20 per cent for the financial year, moving from $58.7 billion at March 2007 to $70. 6 billion at March 2008,” the document stated, adding that the primary contributor to this growth was the increase in loans under the Joint Finance Mortgage Programme.
    The document noted that the growth in housing investment was funded by the encashment of securities in the investment portfolio resulting in a 15.1 per cent or $3.2 billion decline in investment from $21.2 billion at March 2007 to $18 billion at March 2008.
    In the meantime, the Trust recorded a deficit before taxation of $0.72 billion for the financial year, down from a surplus before taxation of $0.90 billion the previous year. After adjusting for tax asset of $0.4 billion, the deficit after taxation was $0.3 billion, down from a surplus after taxation of $0.6 billion for the previous financial year.
    Additionally, total income amounted to $6.6 billion, up seven per cent from $6.2 billion for March 2007. This was outpaced by total expenditure of $7.3 billion, up 38 per cent from $5.3 billion for March 2007.
    “The major sources of income were loan receivables of $3.6 billion, up from $3.1 billion for March 2007, and interest on investments of $2.2 billion, down from $2.6 billion for March 2007,” the document outlined.
    In addition, the major expenditure items were operating expense of $3.9 billion, up from $3.1 billion for March 2007 and bonus on employees’ contributions of $1.5 billion, up from $1.3 billion for March 2007. During the year subsidies and grants increased by 40 per cent to $1.2 billion. Major subsidies included: $547 million to the Inner-City Housing Project; $201 million for the Sugar Workers’ Housing Programme; and $200 million to the Office of National Reconstruction.
    Another major expense item was a provision for impairment of loan receivables of $490.5 million for the current year. This comprised $298.2 million for impairment of institutional loans, $205.3 million for impairment on mortgages, as well as an impairment reduction of $13 million on development financing.