Iraqi Housing Fund Granting Home Loans to Thousands of Iraqis

by admin | January 1st, 2013

Established in March 2005, the Iraqi Housing Fund was designed not to help lower-income Iraqis buy dinar, but to acquire new residences. Prior to its ratification under Law no. 32 of 2011, the fund extended 18,000 home loans to locals. The number of citizens the program was able to help has significantly increased since then, as officials say that the number of loans handed out has reached over 39,000 to date.

“We made a major leap in the number of loans approved” said general director Burhanuddin al-Bassam in a statement to the media.

“In previous years we processed dozens of citizens’ applications for loans every day. But now, the numbers range between 700 and 800 applications and up to 2 billion dinars ($1.6 million) in loans every day.”

Funding for this project amounts around $858 million dollars to buy dinar, of which approximately $170 million is utilized by the government to cover expenses for processing loan applications, as well as aiding low-income citizens build their very own homes.

“We set our ambitions to provide citizens with 25,000 loans or more per year, to proactively participate in national efforts that aim to end the housing crisis” says Ali Hussein, the fund’s deputy general director.

Prior to the housing law’s ratification, the amounts loaned to Iraqis amounted anywhere from $15,500 to $21,500, said Hussein. However, after the law has officially been implemented, limitations were raised to $30,000 for Baghdad residents, and $25,800 for those residing in provincial centers, districts, and sub-districts.

To make things even better for locals, officials have recently passed a proposal requesting to increase these loan amounts even higher to $43,000.

Moreover, officials say that the responsibilities of the Iraqi Housing Fund extend to partnership in housing projects carried out by local and foreign investment companies across the nation.

“This year, we took part in financing 15 housing compounds, including two in the al-Ameriya and Tajiyyat areas of Baghdad comprising 2,000 housing units,” says Hussein. “The rest of the compounds were scattered throughout most provinces, with the numbers of housing units in each ranging between 300 and 20,000 units.”

In addition, the deputy general director says that while some of these compounds are still in the design phase, others are already underway, and will hopefully be completed by the end of 2013.

“These compounds will be built based on the latest international technical specifications, which include all the necessary services the citizens need, such as infrastructure facilities, schools, commercial markets and health centres,” said Hussein.

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