Republic of Lebanon

Housing Project (Second Phase)
Loan No: 666 Interest Rate: 2.5 %
Beneficiary: Banque Du Liban, Housing Bank Grace Period: 5 years
Project Cost: KD 62.5 million Maturity: 30 years
Amount of Loan: KD 50.0 million Repayment: 51 semi-annual installments
Date of Board Approval: 2019-04-25 First Installment: 5 years following the first disbursement
Date of Loan Agreement: 2019-04-25 Date of Loan Effectiveness: -

Objectives:

The project aims at contributing to the reduction in the severity of the housing crisis, and meeting the needs of low and middle-income citizens for adequate housing, which will enable them to improve their living conditions and social situation. This will be accomplished through the provision of concessional loans to those citizens for the purchase or construction of housing units.

Description:

The project, which is expected to be completed by the end of 2020, complements the first phase to whose financing the Arab Fund contributed in 2012 with a loan in the amount of KD 34 million, benefitting 900 families. The project consists of the provision of concessional loans by the Housing Bank to low and middle-income citizens for the purchase or construction of housing units.

The project consists of the following components:

  1. Loans to Low-Income Citizens:This component includes the provision of loans by the Housing Bank to low-income citizens, defined as those whose monthly family income does not exceed ten times the minimum monthly salary, for the purchase or construction of a housing unit. The amount of each loan cannot exceed 80% of the value of the housing unit, or 300 million Lebanese Pounds, the equivalent of about KD 60 thousand, whichever is lower, and the loan repayment period cannot exceed 30 years.
  2. Loans to Middle-Income Citizens:This component includes the provision of loans by the Housing Bank to middle-income citizens, defined as those whose monthly family income ranges between ten and fifteen times the minimum monthly salary, for the purchase or construction of a housing unit. The amount of each loan cannot exceed 80% of the value of the housing unit, or 450 million Lebanese Pounds, the equivalent of about KD 90 thousand, whichever is lower, and the loan repayment period cannot exceed 30 years.

Financing:

The Arab Fund’s loan covers about 80% of the total project cost. Beneficiaries from the housing loans will cover the remaining cost of the project and any additional cost that may arise.