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|13 September, 2018

'Mortgage law urgently required for real-estate sector in Kuwait'

The law will provide a service to the commercial banks represented by creating projects, says Secretary of Real Estate Association

Image used for illustrative purpose. Sunset over the artificial lake at Al Shaheed Park with Kuwait City Skyline in the background, Kuwait City Kuwait - November 10, 2017. IMAGE USED FOR ILLUSTRATIVE PURPOSE ONLY

Image used for illustrative purpose. Sunset over the artificial lake at Al Shaheed Park with Kuwait City Skyline in the background, Kuwait City Kuwait - November 10, 2017. IMAGE USED FOR ILLUSTRATIVE PURPOSE ONLY

Getty Images/Emad Aljumah

KUWAIT CITY -Secretary of Real Estate Association Qais Alghanim says the mortgage law is urgently required for the real estate sector, stressed that the Kuwait Credit Bank will not be able to provide the required loans especially after the distribution of large number of plots in the housing projects of Mutla, South Saad Al-Abdullah and Abdullah Mubarak, reports Al-Rai daily.

He explained that the draft law prepared by a committee that is headed by the Central Bank of Kuwait was set in place on good bases. It provides long period for repaying real estate loans, and allows commercial banks to offer such kind of loans instead of just Kuwait Credit Bank.

Alghanim said he hopes the law will be approved by the National Assembly without any obstacles placed in its way. He insisted that the law offers the same benefits to citizens but the government will bear the interest amount collected by the commercial banks as part of the subsidized loans provided by the state. Alghanim affirmed that the law will facilitate the issuance of loans to citizens instead of making the latter stay on the waiting list for a long time, adding that the law will provide a service to the commercial banks represented by creating projects that will ensure additional money for the banks.

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He indicated that determining the interest should be studied in line with the reason for obtaining the loans, explaining that the interest for a loan intended for constructing a residential investment building should not be as much as that of a loan obtained for constructing private houses.

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