Suitable for the Namibian context

We were pleased to see that the justice minister, Sacky Shangala, has held consultations with regards to sales in execution of homes. He met with stakeholders in the industry on Thursday of last week. Of late, there have been several media reports of homes being taken from their owners, in most cases those most vulnerable, due to unpaid municipal accounts or bond instalments overdue.

According to Shangala, the matter of educating the public on their responsibilities for home loans is very important. However, one of his suggestions is that banks develop some sort of system where, if a bond holder loses his or her job, a 'payment holiday' can kick in.

Shangala suggested six months where the bank expects no instalments and the homeowner has some time to either secure new employment or, can put the home on the market.

According to the Bank of Namibia's regulations, commercial banks have the responsibility to litigate if a bond has not received payment after 90 days. On the 91st day, the bank must litigate.

While we agree that it is ultimately up to the homeowner to contact the bank should they not be able to make payments, Namibia has special circumstances where bond holders may not understand the gravity of not making any payments.

Banks are not in the business of owning houses but as the system stands, they can auction that property off and if the outstanding loan is not settled by that sale, they simply move again after the homeowner to fully settle the loan.

The banks have more protection than the people. A payment holiday would be a great window of relief for many in this country.

Namibians are struggling to get by in these trying times and home ownership is often the result of years of battling to qualify for a loan and then pay it off. To provide some relief, especially to those most vulnerable would, in our view, be very suitable for Namibian conditions.