Iran assigns $30 billion to Housing Ministry
Azerbaijan , Baku, June 6 / Trend /
Iranian government assigns more finance to complete housing projects due to increase of demand for housing construction, daily Donya-e Eqtesad reported.
Iranian President Mahmoud Ahmadinejad signed a decree to assign $30 billion to the Ministry of Housing& Urban Development to encourage construction of cheap houses.
So far, 50 percent of financing required for housing sector has been provided via bank loans and securities.
The low bank resources in construction of cheap houses have led Housing Minister Ali Nikzad to call for more banking facilities and insert of liquidity to complete the so-called Mehr Housing project.
The Central Bank of Iran will allot a $7 billion loan under Ahmadinejad's decree.
The Ministry of Housing& Urban Development is expected to obtain part of the required resources from the national development fund.
The Housing Ministry planned to increase financial resources last solar year (ended on March 20,2011) to $12 billion, but the coincidence with subsidies cutting plan made the bank officials halt the housing financial aid to avoid increasing liquidity and inflation rate.
However, the Ministry ofHousing and Urban Development believes the $5 billion bank loan had no effect on inflation last year.
Bank Maskan gave $90 million aid a month to contractors last solar year. However, the amount is expected to increase to $150 million per month this year.