Nov 18 - Government Says No Use Has Been Made Of Gibraltar Home Loans Company
The Government says it is committed to provide mortgages so that no one who has a desire to become a homeowner and can afford a mortgage is deprived of the opportunity.
At present, the number of mortgages available from all existing providers appears to be more than sufficient to meet the demand, and no use has been made of Gibraltar Home Loans Company Ltd.
The company was set up in 2013 when there was an initiative to create a pool of mortgage funds to which different banks would contribute and to which the Government, through a wholly-owned company, would also contribute.
As originally conceived, it was intended that one bank in particular would manage and allocate the mortgages from the pool, in accordance with established criteria in terms of suitability of borrowers to obtain a mortgage.
A spokesman for No6 said: “The Government-owned company remains as a fall back if the need arises to ensure the policy of the Government in promoting homeownership is not frustrated through lack of available funds.
“Although the GSD in the past engaged in lending using a Government-owned company without a lending licence, this will not happen if Gibraltar Home Loans Company Ltd has to be activated.
“The new GSD seems to be totally unaware of what the old GSD got up to in their 15 years in office, in spite of the fact that two of their 10 candidates formed part of the last GSD Government; or maybe they are fully aware and deliberately choose to ignore it in order to seek to influence public opinion during the election campaign.
“The use of senior civil servants as directors of Government-owned companies was introduced by the GSD. The GSLP / Liberal Opposition never raised any objection to this practice, has no policy difference on this issue and continued with it since 2011.
“The GSD created a number of Government companies in their time and never made any public announcement or saw any need for such a public announcement. Some of them were never made any use of. The GSLP / Liberal Opposition never made an issue of the policy and has continued the same practice since 2011.”
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