|
 |
| Selected MENA Press Release |
|
IFC Supports Landmark Initiative for Affordable Housing Finance in West Bank and Gaza
In Washington, D.C:
Lotte Pang
Phone: +1 202 758 4290
E-mail: lpang@ifc.org
In Cairo:
Riham Mustafa
Phone: +202 24 619 140
Fax: +202 24 619 145
E-mail: rmustafa@ifc.org
Washington, D.C., April 14, 2008—IFC,
a member of the World Bank Group, is partnering with the U.S. Overseas
Private Investment Corporation, the Palestine Investment Fund, and the
Bank of Palestine on a landmark initiative in the West Bank and Gaza that
aims to expand access to housing finance for low- and middle-income residents,
address a severe housing shortage, and develop the residential housing
sector and related industries.
The West Bank and Gaza needs 65,000
more homes today, with demand growing by 11,000 units a year and the housing
supply in decline since 1999. The initiative will establish a new housing
finance company that will use long-term funding of $500 million to help
an estimated 30,000 people obtain home loans on affordable terms. This,
in turn, will boost development of the housing sector.
OPIC will provide up to $250 million
of the funding, with IFC, the Palestine Investment Fund, and the Bank of
Palestine each contributing up to $75 million. Further funding will be
provided by the Palestine Home Mortgage Corporation and the U.K. Department
of International Development. The new housing finance company will originate
affordable home loans in the West Bank and Gaza using this funding and
other sources.
Lars Thunell, IFC Executive Vice President
and CEO, said: "There is a great need for affordable housing in the
West Bank and Gaza, and long-term financing can help meet this need. Housing
finance allows families to build assets as well as homes. It also supports
job creation and economic growth."
Robert Mosbacher, Jr., President and
CEO of OPIC, said, “Mortgage finance that is both affordable and accessible
is a vital engine for home ownership and economic growth. This program
will expand mortgage lending to the people who need it most, and in the
process provide hope to many people in the West Bank.”
“The
housing program and mortgage finance company that we are launching will
improve the lives of many families. This initiative will enable more
people in the Palestinian working and middle classes to own quality homes.
It will create tens of thousands of jobs for Palestinian workers and provide
hundreds of local enterprises with business opportunities,” said Dr. Mohammad
Mustafa, CEO of Palestine Investment Fund
IFC and the World Bank will also provide
advisory services, with a focus on training for the financial sector, improvements
in the laws and policies for housing finance, and assistance to financial
institutions as they launch housing finance products and develop the market.
On his first official visit to the West
Bank in February, IFC’s Thunell signed agreements with Al Rafah Microfinance
Bank and the Capital Markets Authority to improve access to finance for
entrepreneurs and small companies. IFC has been active in the West Bank
and Gaza since 1996, investing in companies and providing advisory services
to support micro, small, and medium enterprises. Despite constraints on
the area’s investment climate, IFC is seeking opportunities to provide
investment and advisory services in leasing and trade finance, as well
as housing finance.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people should
have the opportunity to escape poverty and improve their lives. In FY07,
IFC committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
For more details about IFC’s partners,
visit:
Overseas Private Investment Corporation, http://www.opic.gov/
Palestine Investment Fund, http://www.pif.ps/english.php
Bank of Palestine, http://www.bankofpalestine.com/
|
|
|
|