Parliamentary Investment: Increasing the capital of the Real Estate Bank and reducing bank interest

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[size=52]Parliamentary Investment: Increasing the capital of the Real Estate Bank and reducing bank interest to solve the housing crisis[/size]

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04-08-2024
The head of the Parliamentary Investment Committee, Hassan Al-Khafaji, revealed on Monday that agreement was reached on new mechanisms to solve the housing crisis in Iraq, which included increasing the capital of the Real Estate Bank and reducing bank interest on housing loans.[/size]
[size=45]Al-Khafaji said, “Last week, the Parliamentary Investment and Development Committee hosted the Governor of the Central Bank and the Director of the Real Estate Bank to discuss the mechanism for granting housing loans and ways to enhance them in order to provide housing units for citizens at reasonable prices.”[/size]
[size=45]He stated that “the committee agreed with the Governor of the Central Bank and the Director of the Real Estate Bank to grant loans to citizens for a period of 20 years and with a bank interest rate of 3%, and this will contribute to providing housing units for citizens.”[/size]
[size=45]He pointed out that “the housing loan funds allocated to the Real Estate Bank amount to 50 billion dinars, and this amount is very small. Therefore, we agreed with the Governor of the Central Bank to increase the capital of the Real Estate Bank by an amount of five trillion dinars instead of 50 billion dinars.”[/size]
[size=45]On the second of this month, Rafidain Bank announced the adoption of “decreasing” bank interest on loans and advances starting from the current year, in implementation of the directives of Prime Minister Muhammad al-Sudani, after representatives and sources reported that government banks did not adhere to these directives.[/size]
[size=45]The administration stated in a statement, “Rafidain Bank confirms the adoption of the decreasing interest method on loans to all individuals and institutions since the beginning of 2024.”[/size]
[size=45]She added, “Instead of the fixed interest method that was previously in place, the interest will be decreasing, in a measure aimed at ensuring the provision of the best services to all segments of society.”[/size]
[size=45]On March 26, an informed source told , that most government banks are still adopting the fixed interest method on advances and housing loans, despite the directives of Prime Minister Mohamed Al-Sudani to recalculate bank interest.[/size]
[size=45]It is noteworthy that Iraq is suffering from a severe housing crisis that has not been solved despite the implementation of many projects and residential complexes in Baghdad and other governorates. One of the most prominent obstacles facing citizens is the high bank interest, which in some loans reaches half the loan amount, which has forced many Some of them refrain from buying housing units with bank loans.[/size]
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