Nearly 500 property owners who protested their homes being listed as `historical property' could join a new interest-free loan scheme announced yesterday.

Environment Minister Terry Lister launched the scheme, calling the partnership with the Bank of Butterfield "unique''.

Government will pay the interest on five-year loans worth up to $100,000 for major repairs, renovations or maintenance work on 272 buildings officially listed by the Historic Building Advisory Committee.

Originally, Government approached 764 heritage property owners to have their properties listed.

Of that, 492 property owners protested their inclusion on the list, but will now be contacted to discuss their objections and will be encouraged to become involved.

Mr. Lister said: "Listed buildings are currently exempt from planning and building application fees.

"We hope that this exemption, coupled with this new interest-free loan initiative, will promote more owners to come forward and agree to their buildings being listed.'' Mr. Lister added: "This is a landmark day for the protection of Bermuda's heritage and culture -- thanks to a unique partnership between the Bank of Butterfield and the Government of Bermuda.

"On its part, the Bank has agreed to make $2 million available exclusively for a new listed buildings loan scheme,'' Mr. Lister explained. "On our part the Bermuda Government has agreed to pay the interest on these loans at a favourable rate offered by the ban.

"Five year loans -- up to a maximum of $100,000 per project -- will be available to the owners of listed buildings to assist with the cost of major repairs, renovation, and restoration work, or approved additions to a listed building of architectural or historic significance.'' The Department of Planning, in consultation with the HBAC will operate the scheme, reviewing proposals for their suitability.

With written confirmation from Planning, the property owner can then approach the Bank and go through the normal loaning process.

Details and eligibility guidelines for the scheme are available through the Department's Ms Erica Smith.

Mr. Lister said this year Government has set aside $70,000 to pay the interest on any money loaned out, adding: "I am advised there are projects waiting in the wings pending today's announcement.

"Officers of the bank and the forward planning division of the department have been working on this project for the last two years,'' Mr. Lister continued. "I would like to thank and recognise Steve Jackson, formerly of the department for his energy and his commitment to the listed buildings project.

"I hope that the owners of these important buildings and the community at large share my pride in taking this significant step forward in the conservation of Bermuda's unique building heritage.'' The Bank's vice president for retail banking, Richard Doughty praised planners for their work, saying "the heritage of Bermuda is worth preserving''.

Mr. Doughty added: "As Bermuda's oldest bank, we feel it is fitting that we are able to help with financing the restoration of historic properties.

"We look forward to working together with the Government and the owners of listed properties to honour and preserve our Island's rich history and culture.'' THE CARROT Government pays interest on loans up to $100,000 for major repairs, renovations, restorations and approved additions for properties included on the historic buildings list