In light of its inability to obtain external financing at the current stage, the idea of relaunching loans from the General Housing Corporation was launched by searching for government financing. In this context, the Foundation prepared an integrated proposal that the Director General, Engineer Ronnie Lahoud, and the Minister of Social Affairs, Haneen Al-Sayyed, presented to the Minister of Finance, Yassin Jaber. After studying the initiative, Jaber informed both sides of the allocation of an amount to the institution in the general budget, and this was translated by including $60 million in the 2027 draft budget with the aim of resuming housing lending starting next year.
Regarding the problem of the loan currency that has accompanied the crisis since the collapse of the lira’s exchange rate, engineer Roni Lahoud explained in an interview with the “Lebanon 24” website that the loans will be granted and repaid in US dollars. He attributed this trend to the link between a citizen’s actual income and the dollar, whether in the private sector, where a large portion of income is in green currency, or in the public sector, where salaries are calculated and paid according to the approved exchange rate.
Regarding the conditions for benefiting, Lahoud confirmed the exclusion of anyone who has previously obtained a loan from the Foundation, or who owns an apartment or a housing unit with his or her spouse, while priority remains for those with limited income and according to conditions similar to the previous standards of the Foundation. The proposed loan ceiling is $100,000, with a portion of the financing allocated to restoration loans, with a proposed interest rate of 3.5 percent, while the final repayment mechanism and payment terms are still under study.
Regarding the role of banks in the lending process and whether their current situation constitutes an obstacle, Lahoud ruled out the existence of any problem, explaining that it is the state that will grant the loans, not the banks. Thus, the return of lending is linked to government funding allocated to the institution, while the role of the banks is limited to mediation and implementing the process according to the approved mechanism.
The bet is not limited to government funding alone, as it is expected that the allocation of this amount in the budget will encourage funds and external parties to redirect their funding to the institution and for the benefit of people with limited income. Although regional circumstances still weigh heavily on this path, Lahoud pointed to the response of the various funds, expressing his hope that this will be translated into practice starting next year. He described the amount of $60 million as a sustainable “first stage and beginning” that allows for increased financing later as conditions improve. He stressed, “Certainly, we will not give loans for one year and then stop,” and that the project will finance itself to ensure its continuity.
The importance of relaunching loans is not limited to securing housing financing only, but extends to moving the wheel of the economy as a whole, as Lahoud pointed out that the housing sector’s movement reflects positively on about 65 professions and sectors related to it.
In conclusion, the return of housing loans after seven years of suspension represents a long-awaited first step, but the amount of $60 million within the framework of the draft 2027 budget is still under discussion in the Council of Ministers before it is referred to the House of Representatives for approval, which means that translating this funding into the field requires completing the legislative process. However, the success of this step is not measured only by the size of the allocated amount, but rather by the state’s ability to transform it into a continuous lending cycle through which the General Housing Corporation regains its role in enabling people with limited income to secure their homes and stimulate an economic sector whose impact goes beyond the real estate market alone.
