Works and Housing Minister, Samuel Atta-Akyea has suggested that 30% of the pensions fund must be invested in the development of real estate.
This, the Housing Minister, said is to ensure a credible mortgage scheme as well as to cut down on the high interest rates of mortgages in the country.
“If you look at the Pensions Act, it tells you that some of the funds should be used for Real-Estate matters.
“I will even submit that if the monies belong to these workers of the country, then we should allocate 30% of every coin that drops into the pensions fund for the purposes of real estate construction and a credible mortgage scheme,” he told Kojo Yankson on the Super Morning Show.
This comes on the back of a promise by the ruling NPP to create an enabling environment for home ownership through a mortgage scheme in their next administration.
However, the high cost of mortgages is likely to bar the party from achieving this goal.
Mr. Atta-Akyea noted that the party, to achieve this goal, will amend the pensions act to allow more funds to be invested in real estate development.
“When you come to the manifesto of the NPP, it says ‘we should amend the law to allow the pensions fund to invest more than 5% of their portfolio in real estate asserts including pensions backed mortgages,” he said.
“I would rather suggest that 30% of every coin that drops into the fund is allocated to real estate construction. This will reduce the argument on the high interest rates.
He believes “government should intervene and use the fund to the ultimate benefit of Ghanaians”.