Housing Finance gets 15b mortgage fund
Publish Date: Nov 15, 2010
Newvision Archive
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By Sylvia juuko

THE Government plans to capitalise Housing Finance Bank with sh15b to boost mortgage financing in the country, finance minister Syda Bbumba has announced.

“The Government will participate in further capitalisation of the bank by converting the sh15b currently held in the bank into equity in line with its commitment to enhance the housing stock,” she said on Thursday.

The minister was officiating at the opening of the bank’s new head office at Wampewo Avenue in Kololo, Kampala.
She revealed that the bank would list shares on the Uganda Securities Exchange in the next financial year to allow Ugandans own a stake in the bank.

“The Government is committed to ensuring that public participates in Housing Finance’s success story.

I ask the board and management to commence arrangements to list bank shares on the securities exchange next year to support the capital markets and put wealth in the hands of Ugandans,” the minister said.

She pointed out that the biggest challenge for the financial sector was financing for long-term projects. She appealed to the bank to accelerate mortgage financing.
“We have a big deficit of mortgage financing in particular and long-term finance in general.

There is a deficit of over one million houses for the working class and upper class, with a population growth of 3% per annum. This is a big challenge.”
The minister appealed to the bank to lower interest rates on loans for customers to benefit from the bank’s efficiency in keeping the costs low on the project.

“If you were able to manage the costs, this can be demonstrated by lowering interest rates for customers,” she said.
She credited the bank for facilitating house ownership for Ugandans in the formal and informal sector.

Most of the other major banks in the country also offer mortgage financing products. They raise the money privately or through the sale shares.

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