PHILIPSBURG--Minister of Traffic and Transportation Patrick Illidge introduced a two-fold initiative on Friday in collaboration with the Postspaarbank (PSB) of the Netherlands Antilles, which operates through the Post Offices of the Netherlands Antilles.

Along with Managing Director of the PSB Daniel Hodge, Illidge announced the opening of a PSB Loan Centre on St. Maarten and the development of an affordable housing project for middle income persons.

The intention is for the Island Government to make property available for the construction of the homes, which will be financed by the PSB. The prices of the homes will be kept under US $200,000, making it easier for first time, middle class citizens to qualify for a home.

Illidge said negotiations with the family that own the property are "90 per cent complete." The models of the two and three-bedroom homes are already developed and should be put on 3-D display inside the new PSB Loan Centre.

Hodge explained that the centre will be located on Juancho Yrasquin Boulevard. The office will be refurbished and given the "feel of a bank" to handle loan activities (mortgage and personal). All cash activities will be carried out at the Post Office.

Illidge explained that when he started his tenure, he had been very cognizant of the fact that St. Maarten had a housing problem and immediately looked for ways to "ease the burden on people and make some dreams come true." When realising that the PSB fell under his Ministry, efforts commenced to encourage the PSB to be more active on the island.

He praised Hodge and Commissioner of Housing William Marlin for their constant cooperation in realising both initiatives. He said the projects should be ready for ground breaking in about a month's time.

Hodge added that PSB is not a commercial bank and does not have profit maximization as an objective. This simple fact, he said, affords the PSB the ability to offer competitive interest rates (currently at 6 per cent). However, he said a special rate will be looked at for the housing project that should not exceed six per cent.

The PSB recorded an operational profit of approximately US $1.2 million in 2009 and has approximately US $110 million in outstanding loans. The Windward Islands account for 15 per cent of the US $110 million, with St. Maarten accounting for an 11 per cent share of the 15.