PUTRAJAYA,Mon- Civil servants who are victims of abandoned housing projects
may now be eligible for a second full loan to purchase another house.
Under a new loan scheme, they could also be exempted from servicing the
interest on their first loan.
Treasury secretary-general Datuk Seri Izzuddin Dali said the scheme would
help ease the problems faced by civil servants who bought houses but could
not move in as the projects were abandoned.
"The Treasury is formulating a system to help borrowers find a solution to
their problem," he said in a circular.
He said paragraph 3.5 (loan condition), 12 (loan interest) and 16 (loan
repayment) and several other clauses in some circulars would be amended to
include the following conditions:
• Borrowers who cancelled their loans or had them cancelled by the Treasury
due to abandoned house purchases can apply for another loan and will be
considered borrowers for a first-asset purchase.
• Interest on a loan is exempted from the day of cancellation until the next
payment voucher is issued when an abandoned project is revived, or on a date
fixed by the Treasury.
• Borrowers for abandoned projects whose loans are cancelled are required to
settle their remaining balance in a lump sum or installments.
Izzuddin said the definition of "abandoned projects" in the 1994 and 1995
circulars would also be amended to mean that "they are projects abandoned by
developers certified by the Housing and Local Government Ministry or Survey
and Mapping Department".
He said borrowers would be required to apply for the cancellation of loans
or wait for the abandoned projects to be revived, although the timeframe
would be determined by the Treasury.
For abandoned projects beyond revival, he said the loans would be
automatically cancelled by the Treasury.
