They described it as "incapacitating" .. Iraqis criticize the mechanisms of a government bank to buy housing with "usurious" loans
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Shafaq News/ Today, Saturday, citizens criticized the instructions issued by Al-Rafidain Bank regarding the benefits of loans for the purchase of investment housing units, which they considered not helping to achieve the purpose, while economists described the mechanism for granting credit in Iraq as the "worst" among the countries of the world.
Citizen Ahmed Namir said in an interview with Shafaq News agency, "The annual interest for a loan of 100 million dinars over a period of 20 years will be 160 million dinars with interest," describing it as "incapacitating."
He added that "treating the housing crisis with such usurious loans cannot be solved," calling for "the need to activate the Housing Fund and the Real Estate Bank to grant interest-free loans instead of resorting to banks that do not have mercy on anyone."
For his part, citizen Ali Aref said in an interview with Shafaq News agency, "The mechanisms and instructions of Al-Rafidain Bank regarding housing loans do not help in granting facilities for the purpose of purchasing housing units, but rather they came for trading and achieving the maximum possible profits."
He also pointed out that "these instructions and incapacitating loans will not help solve the housing crisis in Iraq, but will increase real estate prices in Iraq, especially if we know that housing units in vertical construction, or what is known as apartments, will increase their prices to more than 150 million dinars."
"Any financing or granting a loan for the purpose of purchasing housing units must be at low costs, i.e. soft financing, with long periods and low interest," said economist Muhammad al-Hassani to Shafaq News agency, noting that "banks in this way are not financing development, but rather commercially with the intent of profit."
He added, "The mechanism for granting credit in Iraq is the worst among the countries of the world in terms of funding, complex instructions, and very high interest," adding that "the guarantees and mechanisms are difficult, and the mechanism for collecting interest is unfair, as the interest rate remains full on the principal amount until the end of repayment without deducting the amounts." Outstanding.
A number of government banks, especially Al-Rafidian and Al-Rasheed Banks, are competing to grant various and many loans according to mechanisms and instructions that may sometimes be strict, while some citizens suffer from difficulty in obtaining these loans compared to countries in the world, in which these loans are often directed towards the optimal investment for them.
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