Cabinet proposes deal for D.F.C. borrowers

Homeowners indebted to the Development Finance Corporation will soon get a shot at a big break. That’s the word from Cabinet which yesterday approved in principle a plan to allow borrowers of less than fifty thousand dollars to pay off their loans on the cheap. According to a Cabinet release, those with loans in arrears will be given the opportunity to pay off the principal balance at a twenty percent discount. Those whose loans are up to date can make arrangements for a twenty-five percent discount, while borrowers with the ability to pay off in full immediately will qualify for a thirty percent discount. It should be noted that the discounts do not apply to accumulated interest, which in some cases actually exceeds the original principal. Details of the deal will be announced shortly by the D.F.C.

In a related development that seems to mark the liquidation of the once vital D.F.C., Cabinet is considering a plan under which the Ministry of Housing would take over non performing home loans and Ministry of Education would be administering delinquent educational loans. The rationale is the prevention of unfortunate borrowers from losing the roofs over their heads … but the practical result may be the re-politicization of publicly held debt … a pitfall that has plagued the D.F.C. from its inception.