Housing lending: complexities persist and "housing" crystallizes a solution – Alankabout Spider – Lebanon News – Australia News

Low-income people are affected by housing loans, especially those granted through the Public Housing Corporation. However, the IMF does not have the keys to an appropriate solution to handle all loan applications. Its competence makes it a mediator between the people on the one hand and the Bank of Lebanon and the commercial banks on the other hand, without possibility of having loan funds. However, the negative consequences are incumbent on these: to try to explain the crisis to the population, to avoid blame. It is an increasingly difficult attempt given the insistence of the Bank of Lebanon and its successor to the political power to play with the nerves of the people and give him forgeries. hopes that housing loans are on the right track.

Balance of figures
The Finance Unit of the Bank of Lebanon presented a number of figures relating to the value of loans supported by the Central Bank, including "45 billion lire for the financing of loans to education, 38 billion lire for microcredit and microcredit program, $ 500 million to finance all other loans, for example, environmental loans (energy and non-energy), expatriate loans and production loans, which do not benefit from State subsidies to the city (hospitals, private educational institutions, etc.). R, and loans to finance operating capital in exchange for industrial exports ".

The unit highlighted the housing loans supported by the Bank of Lebanon, note of the Intermediate Circular No. 515 published in late January 2019. It allows banks to benefit from the support of the Central Bank against loans granted to the Bank. their customers and their commitments before 31/12/2019. New specific circularization.
The statement points out that the central bank has allocated about £ 864 billion (£ 790 billion) to finance housing loans granted in Lebanese pounds, provided that the value of a loan does not exceed £ 450 million. . He added that the amount would be divided into two parts, the first of a value of 490 billion pounds will be allocated to the financing of housing loans that the banks have committed to finance during the year 2018 and to be used in 2019. The balance, of an amount of 864 billion pounds In billions of pounds, has been allocated to housing loans to be granted in the year 2019.

Banks decide
The financial unit of the Bank of Lebanon is nothing new to remind the population the credit crisis by presenting figures that confirm the inability of the political authority that runs the country to find a solution to the crisis of housing shortage. The unit also indirectly indicated that it is the banks, which have all the power to hold the lives of Lebanese, especially those whose income is limited, in the first place.

"Banks have so far expressed their willingness to allocate at least 25 percent of housing loans earmarked for 2019 to finance housing loans granted in accordance with the protocol signed with the Public Housing Corporation, while housing loans granted according to signed protocols With the security services (including the military housing system), about 34% It should be noted that the Housing Bank has obtained the approval of the Bank of Lebanon to support housing loans worth 60 billion lire, or 16%, intended for low-income people, The amount of a loan exceeds 300 million lire Housing to belong ".

In other words, the banks distribute the percentages they intend to follow to grant loans, because they are the ones who actually finance the loans, and the Bank of Lebanon only covers the loans. interest throughout the repayment period of the borrower. Thus, the role of the Bank of Lebanon is to relieve the borrower not to pay a high amount to the commercial bank in a short time. In addition, the approval by the Central Bank of the coverage of the value of the interests of the applicant is considered a guarantee for the commercial bank to give the borrower the required amount.

According to the distribution, 34%, with 16%, equals 50%, ie half of the amount allocated to housing loans. The second half will be divided between the General Housing Organization at least 25% and the rest of the beneficiaries of housing loans by other mechanisms stipulated in the cooperation protocols between them and the Bank of Lebanon, for example the Ministry of Displaced Persons and the Mutual Fund for Judges. Sources at the Bank of Lebanon, which refer to "cities", say that "commercial banks determine how to allocate ratios according to their investment policy".
Therefore, "the allocation of at least 25% of the loans" to the Public Housing Institution means, for the reason, that the banks set a ceiling of 25%, the remaining 25% being "intended for other mechanisms". This means that the banks will give a portion of their loans to low-income countries, given the volume of requests to the Public Housing Agency, compared to requests from third parties.

Central is silent and housing suffers
The Central Bank does not intervene in the distribution of percentages, although the decision in terms of procedure is incumbent on it. Decision making is preceded by consultations with the banks and final decisions are made. And the plant will not contradict what the commercial banks see, in the end is the head of this system and its sponsor, who governs Lebanon, and the financial institutions are only the proof of the depth of the relationship that guarantees the interests of the banks.

Under the weight of interest and silence, "the Public Housing Institution seeks to find a solution to the crisis," according to sources of the Foundation during an interview with the "cities" . Sources are surprised by the decision of the Central Bank to give priority to loans offered by channels other than the public institution, while this institution receives applications from the largest segment of low-income people.
According to sources, "the circulation of the financing unit, which recalls earlier decisions, is an attempt to say that the Central Bank is employing to solve the problem of loans, but on the contrary, because the 39; public institution is trying to solve this problem, and signs of a solution can not be announced at the moment ", People do not make promises that might not be realized for several reasons. "