Prime Minister Bruce Golding has revealed that there will be a review of some of the financial operations of the National Housing Trust (NHT), in light of the $500 million loss the government agency is reporting for the financial year 2007-2008.

This figure continues the NHT's trend of losses, following its $2 billion deficit for the previous financial year.

The prime minister, who was speaking to journalists on Tuesday, said he is to receive a report from the management of the government agency by the end of the week, looking at a number of policy options that will seek to reverse the losses made at the NHT.

Raised concerns

A look at the interest rates was one of things that the prime minister said would be a part of the assessment. The trust now offers rates ranging from two to six per cent. The prime minister, however, raised concerns over the average rate of loans versus what the NHT has to refund to contributors.

"The relationship between your mortgage rates, what you lend at and what is the cost of your fund is going to have to be addressed - either one will have to go up or the other will have to go down," he stressed.

"You are lending at 4.7 per cent, your cost of funds is 4.2 per cent, (and) you are trying to operate at a margin of half of a per cent. There is no organisation, no entity anywhere which can operate on that sort of a slender margin," he continued.

Golding again chided the former People's National Party administration for what he said was its political decisions, which have placed the NHT in a precarious position.