Press Release 13 –
RBF Announces Policy Changes
Press Release No. : 13/2008
Date : 23 June, 2008
Following the relaxation of local borrowing by non-resident controlled companies announced at the end of April, the Reserve Bank is relaxing the policy on local borrowing by non- resident individuals.
The new guidelines are as follows:
1. Non-resident controlled companies may now apply for exempted status which would allow non-resident individuals investing in their projects to borrow up to 75% locally under the following conditions:
- Project would have been 25% completed when the lending policy was implemented in January 2008;
- Documentary evidence of completion to be verified by a Chartered Accountant;
- Only stage of project in progress at that time of policy change will be exempted.
2. Non-resident individuals can borrow locally up to 60% to build new residences.
3. Non-resident individuals can borrow locally up to $100,000 for maintenance and repairs of properties.
Non-resident individuals will still be required to fund acquisition of properties entirely from abroad.
These measures come into effect immediately. Details of these measures are available from the Reserve Bank.
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