Republic of Lebanon

Housing Project
Loan No: 585 Interest Rate: 3.0 %
Beneficiary: Housing Bank Grace Period: 4 years
Project Cost: KD 42.5 million Maturity: 22 years
Amount of Loan: KD 34.0 million Repayment: 37 semi-annual installments
Date of Board Approval: - First Installment: 4 years following the first disbursement
Date of Loan Agreement: 2014-05-11 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 the second quarter of 2015, 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 includes the following main components:

  1. Loans to Low-Income Citizens: This component includes the provision of loans by the Housing Bank to low-income citizens, that is 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, whichever is lower, and the loan repayment period cannot exceed 20 years.
  2. Loans to Middle-Income Citizens: This component includes the provision of loans by the Housing Bank to middle-income citizens, that is 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, whichever is lower, and the loan repayment period cannot exceed 20 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.