1. PRESENTATION FOR THE INTERNATIONAL CONFERENCE “AFFORDABLE HOUSING & MORTGAGE FINANCE” SPONSORED BY THE STATE BANK OF PAKISTAN 28 TH MAY 2015, ISLAMABAD KIETAU TABWEBWEITI Deputy Chairman Kiribati Housing Corporation

2. Introduction Geography i.34 coral islands, ii.Spread over area of 5m km² central of Pacific Ocean,Spread over area of 5m km² central of Pacific Ocean, iii.810.5 km² land area iv.British colony, independence 12 July 1979 Population – 104,000 (2010 census) Language – Kiribati (mother tongue), English (official)

3. Structure / Products (1) KHC (SOE): Public Service Office Functions ◦ Provision and maintenance of civil servant housing ◦ Financing home and other related loan products Minister, 5 Board Members, CEO, 4 Line Managers, 55 workforce First function ◦ Administration of housing stock ◦ Maintenance ◦ New development

4. Structure / Products (2) Second function ◦ Loan Products: - New Home package (10% int) 7-30K - Extension/Upgrading package (10% int) 3-8K - Water & Sanitation package (8% int) <3K - Furniture & White Good package (8% int) <3K Customers ◦ Home loan: 602 clients ◦ Water and sanitation: 1,094 clients ◦ 65 % civil servants, 25% SOE employees, 10% Private sector ◦ Portfolio: $1.1m

5. Policy and Environment Land availability ◦ Freehold, government leased, etc Setting of tariff Investment financing for capital programs

6. Issues and Challenges Shortage of housing (civil servants) Institutional strengthening Tariff Land issues Financing for capital programs

7. Market & Products Share ANZ Bank 40% (A, B, C) DBK 30% (A, B, C) KPF 15% (B) KHC 10% (C) 600+ clients 60 small lending organizations 5% (A) A = Personal Loans B = Commercial Loans C = Housing/related Loans

8. Challenges / Issues Competitive market on home loan as other FI also provide same products Limited fund to expand market activities Land issues for home loan to access and to assign as collateral Workforce lack of experience in banking Arrears Exclusive of non salary persons

9. Past Experience Non Salary Persons Early to late 1990’s KHC provided loans to ◦ Communities ◦ Fishermen ◦ Bakers etc Failures ◦ Lack of commitment from communities and individuals ◦ Non repayment and arrears ◦ Lost track of persons (move away from original addresses) ◦ No collateral (risk)

10. Possible Strategies Home Savings for salary persons Small home loan packages for non cash earners Home Lottery for everyone BOOT/PPP

11. Conclusion 1.Thank the government of Pakistan and the host State Bank of Pakistan 2.Privilege to be part of this forum 3.Opportune to hear and learn from one another 4.Continue restlessly to deliver and achieve our cause as FI that is “Housing for All” 5.Peace be with You