Lebanon: BDL Processes $253M in Housing Loans So Far This Year

Jul 2019
Lebanon, July, 23 2019 - The Central Bank has been subsidizing housing loans for many years to help low-income families buy homes and to stimulate the real estate sector.

The Central Bank has approved and processed LL380 billion ($253 million) worth of subsidized housing loans in 2019, out of an allocated amount for this year of LL790 billion, it said Monday. “The total number of housing loans approved by BDL till this date from the [original] quota in 2019 is about LL380 billion, and [BDL] will complete a study to decide on the rest of the files before the end of the year,” Banque du Liban said in a statement. “The total number of beneficiaries of housing loans supported by the BDL reached about LL19.213 trillion, distributed to approximately 128,000 beneficiaries” it added.

The Central Bank has been subsidizing housing loans for many years to help low-income families buy homes and to stimulate the real estate sector.

BDL’s new incentives package includes several items.

The statement added that LL790 billion had been allocated for the financing of housing loans granted in Lebanese pounds, provided that the value of one loan did not exceed LL450 million for the purchase of the residential unit to be owned. This total amount has since been increased to about LL864 billion.

It said that this amount had been divided into two parts. The first covers the amount of LL490 billion allocated for banks so they can provide subsidized housing loans for their customers. Each customer is only allowed to buy one house once, and is not entitled to benefit from the program again.

The remaining portion of the LL864 billion - about LL374 billion - has been allocated for housing loans to be granted in 2019.

“Banks have so far expressed their desire to allocate at least 25 percent of the allocated loans for the year 2019 to finance housing loans granted in accordance with the protocol signed with the Public Housing Institution,” the statement said.

The share of housing loans granted according to the protocols signed with the security services (including the military housing system) will be about 34 percent. “The Housing Bank has obtained the approval of BDL to support housing loans worth LL60 billion (16 percent of the LL375 billion allocated for 2019) that will be granted to those with limited income and not to exceed the value of one loan of LL300 million per housing unit to be owned,” the statement added.

The Central Bank added that it had allocated LL45 billion to finance educational loans in Lebanese pounds.

“The total of educational loans from the year 2009 until this date has amounted to LL303 billion and has benefited about 11,250 students,” BDL said.

It has also allocated LL38 billion for microfinance and microcredit programs.

Source : The Daily Star

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