Iraq: Housing Fund raises capital to help solve the housing problem
Friday, July 1, 2011
BAGHDAD - Hisham Abdul Wahab
Raise housing fund in Iraq, which is the basic funding for the implementation of housing units, the capital of one trillion dinars (about $ 820 million) in order to enhance its contribution to increasing housing supply and raise the ceiling on lending and increase the chances of rapid development in the construction sector.
The Director General Burhanuddin Salman called on government departments, which owns the land suitable for the implementation of housing projects for its staff in Baghdad and the provinces, to the benefit of the Fund, adding that the Ministry of Construction and Housing will implement the project Ascanea to its employees in the land of a subsidiary in the Amiriya west of Baghdad, with funding from the Fund and the implementation of companies affiliated to the ministry. He noted that the Fund does not deal with the state-owned companies only, companies can domestic and foreign private also take advantage of financing methods to be adopted by the construction of housing units.
Questioned experts are concerned, the ability of the Iraqi private sector to contribute in addressing the housing crisis, stressing the importance of attracting foreign investment, although this option is not right, but it is a solution now. The expert called for the economy Tawfiq inhibitor to remove barriers to investors and their companies and create a suitable environment. He stressed the importance of employing the recommendations of economists, in practice, after studying the results of indicators by the investment agencies and specialists to choose the appropriate implementation mechanisms.
The economist, Deputy Governor of Central Bank of Iraq, Ahmed Bureihi Ali, highlighted the need for attention to the construction sector and construction in order to accommodate the mass expected cash from the funds of oil after licensing rounds, and expected to reach the population in 2010 about 44 million, raising pressure on the housing sector to contain them.
But there are those who warned of the persistence of high real estate prices in general, coincide with the government's orientation to the distribution of housing loans to government employees equivalent to a hundred salary, criticized by a number of specialists, explaining that the government construction of housing complexes and distributed to citizens rather than giving them loans will raise the prices of homes and land.
Iraq has suffered from long periods of severe shortage in the number of housing units, and official statistics estimate that may need more than three million units.