Rwanda: Low Cost Housing Fund Could Be Operational in February

Dec 13, 2018 | The New Times: All Africa

The government-backed Affordable Housing Fund could start issuing subsidised and cheaper mortgage loans in February next year.

The government-backed Affordable Housing Fund could start issuing subsidised and cheaper mortgage loans in February next year. The revelation was made yesterday by the Minister for Finance and Economic Planning, Uzziel Ndagijimana, and the World Bank Country Manager, Yasser El-Gammal, after signing a loan agreement to support the Fund. The World Bank will lend Rwanda $150 million (Rwf130 billion) to expand access to housing finance.The 25-year credit facility, which was approved by parliament and cabinet, attracts an interest rate of 1.35 per cent per annum. It will be implemented by the Development Bank of Rwanda working with other financial institutions to expand mortgage lending. "Towards the end of February (2019) the fund could be accessible if everything goes well," Ndagijimana said, responding to a journalist's question on when the fund could start operations. Under the affordable housing fund, investors in residential houses will get subsidies on the interest rate and will be paying about 10 per cent instead of the current 17 per cent, government officials said last year when the fund was launched. But the finance minister said yesterday that it is still too early to know exactly what the interest rate will be for borrowers when the fund starts operations even as the intention is to keep it low."The intention is to keep the interest rate lower than ordinary rates," he said. Read the full article on All Africa.
Source: All Africa