Housing Foundation for Real Estate Traders: "Enough!" The Alankabout Spider – Lebanon News – Australia News

Lahoud's decision was to not accept any new housing loan applications "until further notice". "Banks have difficulties approving 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" [19659011] What is clear is that Lahoud's decision addresses directly to the banks that have not exhausted the total amount of support, since banks that have exhausted the quota of support do not will not apply for a mortgage loan from the Public Housing Corporation. It also shows that there are specific banks that intervene in the interest of interventions and interventions, that is, implicitly accusing these banks of unacceptable practices while the market suffers from scarcity. subsidized housing loans. At least three banks were deliberately reluctant to receive subsidized loan applications and reserved the quota obtained at the Bank of Lebanon for clients in favor of other customers who purchase apartments from real estate brokers at these 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. Bank of Lebanon at the expense of hundreds of outstanding applications in the market.
In fact, these banks can be clbadified as a reserve for subsidized loans, as a monopoly process to facilitate access to a certain category of public funds. A large number of rich people
In practice, the decision of the Public Institution for Housing can not be interpreted without this framework: it does not constitute a blockage for the receipt of loans already suspended, it protests against the monopolization of the loans of some banks, which does not mean in any way But it clearly reflects the extent of the underlying crisis of real estate financing, between banks and real estate agents, between traders and customers or between customers and banks.

Banks refrain from receiving subsidized loan applications and reserve the quota to the clients the real estate that is owed him
What reinforces this, is that The decision of M Lahoud intervenes several months after the Bank of Lebanon modified the housing loan support mechanism and reduced the funds allocated to support them. 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. The Public Housing Corporation found that banks stopped sending orders under the pretext of using their quotas from the Bank of Lebanon and later discovered that these banks were blocking the quota of grants for customer requests for loans. monopolistic reasons and not for exhaustion. The director general of the Housing Authority, Roni Lahoud, said that "the decision to stop new applications is used to determine old cases because this issue is social and unacceptable discrimination". He stressed that "housing loans supported by the Bank of Lebanon are suspended, Applications" The residential housing provided before the decision will not stop, but we will not receive new applications at the moment ". Lahoud pointed out that the search for new sources of funding is continuing. In this context, three members of the Movement for the Future support housing loans through the Ministry of Finance and no longer the Bank of Lebanon, as was the case before.

Real estate buyers ask Lebanese to pay for their adventures 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 tripping over 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!