The Federal government makes amendments to borrowing mechanisms

Shafaq News/ The General Secretariat of the Council of Ministers announced on Tuesday introducing amendments to the borrowing mechanism for economic projects.

The secretariat said in a statement received by Shafaq News agency, "based on the recommendations of the meeting of the competent committee to set up a mechanism for granting zero or low-interest loans to projects, the committee conducted during its fourth session held on 01/24/2021, the following amendments:

1. Paragraph (First / 3) granting loans to housing projects according to the governorates' population percentage and poverty rate (60% according to the population ratio and 40% according to the poverty rate).

Previously, the paragraph accounted for the population ratios of the governorates only.

2. Paragraph (Second / 1 / b) The housing loans are granted for building housing units whose areas are not less than (100 m2) or adding construction. It should not exceed 75 million dinars in city and governorate centers, 65 million dinars in the districts of Baghdad governorates, 50 million dinars outside the governorate centers, without interest and with a payment period of no more than twenty years, in exchange for a one-time administrative commission of 5% of the loan with a guarantee of the property itself and a retain accepted by the bank.

3. Paragraph (third) lending mechanisms apply to previous loans, to include the remainder of the installments of those loans for the initiative itself in terms of its distribution over the new period of the loan and the interest rate. Therefore, the previously paid installments are not included in the mechanisms mentioned above.