By Andria Kades
IN A BID to rein in its non performing loans, the Housing Finance Corporation (HFC) will hire additional staff to handle arrears, the organisation’s chairman Loizos Papacharalambous told MPs on Monday.
He told the House finance committee that 28 per cent of HFC’s €776 million loan portfolio was non performing but added that all its loans were covered by collateral as it only offered housing loans.
The HFC was created by the state in the 1980s to provide long-term loans to first-time buyers or to low and middle income families that owned no prior property.
Its core tier one capital was 90 million euros or 18 per cent.
The chairman said the HFC planned to raise its provisions for bad debts from 12 per cent to 20 per cent by the end of 2015, on the instruction of the auditor general and the Central Bank.
The organisation also announced it was cutting its interest rate to 3.75 per cent from the current rate of 4.25 per cent starting April 1.
The HFC website was expected to be updated on Monday to include all new loans that will be offered and the new interest rates that will come with more conditions.