Banks hold "KOTA" housing service for its debtors!

Muhammad Wahba –

Once again, home loan seekers have fallen victim to the practices of some banks. The Public Housing Authority stopped receiving applications after finding that some banks had misleading claims regarding the exhaustion of its support quota of the Bank of Lebanon, while still maintaining amounts to finance the sale of apartments built by debtors at these banks. In real estate even explode another. The previous crisis, caused by the reduction of subsidies and the consumption of all subsidies for 2018 and half of the quota allocated for 2019, developed last week after it appeared that some banks reserved quotas for specific customers. The case was revealed to the Public Housing Corporation, prompting the chairman of the board of directors, general manager Roni Lahoud, to make a decision last Thursday asking the banks "not to accept any new application for housing loan until Monday. " The content and wording of the resolution reflect the magnitude of the crisis and the resulting confusion. "Aberrant" practices are one of the tools carried by the interests of the relevant parties of banks and real estate brokers at the expense of the clients and the Public Housing Corporation. Part of the subsidized quota for loans and their allocation to debtors' customers from banks is a sufficient measure to determine the extent of the real estate market crisis and the involvement of both parties. The involvement of banks in the financing of real estate dealers and their projects is at the heart of the crisis.

In order to prevent mediations and interventions
Lahoud's decision was to not accept any new housing loan applications "until further notice". "The banks are struggling to approve all applications for housing loans in accordance with the terms of the memorandum of cooperation signed between the Foundation and the Lebanese Banks Association and to avoid embarrbadment, interference and mediation."

It is clear that Lahoud's decision goes directly to banks that have not exhausted the total amount of support, as banks that have exhausted the support quota will not submit any loan application to the bank. housing at the Public Housing Corporation. It also shows that there are specific banks and that it is in the interest of interventions and interventions, that is, implicitly accusing these banks of making unacceptable practices. while the market suffers from the scarcity of subsidized housing loans. At least three banks deliberately refrained from receiving subsidized loan applications and reserved the quota they received from the Bank of Lebanon for customers in favor of other customers buying apartments from real estate brokers who they owe banks. Banks believe that such behavior and inappropriate practices protect their real estate portfolio in the market: the developer encourages to sell apartments with pre-booked loans and does not need to clbadify debtors as defaulters, they can also sell and make profits based on support. The Bank of Lebanon at the expense of hundreds of pending applications on the market.

In fact, banks can be clbadified as a reserve for subsidized loans as a monopoly process to facilitate access to a certain clbad of public funds. Which benefited a large number of archaeologists
In practice, the decision of the Public Institution for Housing can not be interpreted without this framework: it does not constitute a blockage to receive loans already suspended, she protests against the monopolization of loans from a few banks.

This reinforces Lahoud's decision to come months after the Bank of Lebanon Adjust the housing credit support mechanism and reduce the amounts allocated to support Here. The problem of outstanding credit in the banking system and the problem of new loans have emerged. The quota allocated by the Bank of Lebanon was rapidly depleting LBP 750 billion, aggravated by pending claims that did not benefit from the loans, although the claimants paid in advance the owners of the flats or began to carry out loans. decoration and improvement work before obtaining the loan. Only after consuming more than half of the 2019 grant have doubts about the fate of the market, prices and the financial collapse in the real estate sector. In this context, the Public Housing Corporation found that the banks stopped sending requests under the pretext of using their quotas with the Bank of Lebanon and discovered that these banks were blocking the quota of subsidies for the requests of the banks of Lebanon. customers for monopoly reasons and not for exhaustion.
The General Director of the Housing Authority, Roni Lahoud, said that "the decision to stop the new applications serves to determine the old cases because this issue is social and the discrimination is unacceptable". , Note that the application T residential loans provided before the publication of the decision will not stop, but we will not welcome new applications at the present time. Lahoud pointed out that the search for new sources of funding is continuing. In this context, a bill submitted by three members of the Movement for the Future supports housing loans through the Ministry of Finance and no longer by the Bank of Lebanon, as was the case before.

The Lebanese are the price of their adventures on the market. They want subsidized loans to continue keeping real estate prices at current levels and that they even hope to raise them a bit, giving them a hedge on their capital employed in the sector and preventing them from stumble on the banks. They want the continuation of public loans to save their capital from real estate adventures that they thought would continue indefinitely. This is the story behind the data supporting the Future Stream MPs project to support housing loans. Previous incentives included in the draft budget 2018, such as reducing real estate registration fees from 375 million lire to 3%, have not worked, while the debts of traders to banks can be considered to be stumbling or doubtful to recover. Incentives to revive the real estate sector before it is too late and it becomes very difficult to get out of its ordeal, "said a statement yesterday from the Association of Real Estate Developers in Lebanon. public money to support traders!