Private Housing Program of the Oman Housing Bank in Oman
A loan agreement, and a guarantee agreement, for KD 40 million were signed in Tunisia on the 8th of April 2014 to help finance the Private Housing Program of the Oman Housing Bank in the Sultanate of Oman.
The loan agreement, and the guarantee agreement, were signed by H.E. Mr. Darwish bin Ismail bin Ali Al Balushi, Minister of Finance, on behalf of the Government of the Sultanate of Oman. H.E. Mr. Abdlatif Yousef Al Hamad, Director General/Chairman of the Board of Directors of the Arab Fund, signed both agreements on behalf of the Fund.
The program aims at contributing to securing adequate and proper housing suitable for low and medium-income citizens, enabling them to improve their living conditions and social status. The program includes the provision of affordable housing loans to citizens eligible to buy or build housing units in accordance with the principles and rules and lending terms acceptable to the Arab Fund. These include that the amount of each loan should be no more than 90% of the value of the dwelling unit or 60 thousand RO, whichever is less, and that the repayment period should not exceed 25 years.
The loan will carry interest at 3% per annum and will be repayable over 22 years with a 4 year grace period.
The Oman Housing Bank will be the beneficiary of the loan, and will be responsible for implementing the project, which is expected to be completed by the fourth quarter of 2017.
With the signing of this loan, the Arab Fund's total contribution to financing projects in the Sultanate of Oman now amounts to KD 357.50 million.