An overview of Beirut. (Credit: Guillaume Boudisseau)
After returning from Qatar following a mid-May visit by a delegation from Lebanon’s housing loan institution, Banque de l'Habitat (BDH), CEO Antoine Habib told L’Orient-Le Jour that discussions with officials from the Qatar Fund for Development (QFFD) were positive regarding a potential line of credit for subsidized housing loans.
The proposed funding, intended for low- and middle-income Lebanese and individuals with special needs, would amount to $300 million over six years, or $50 million per year. The terms have not yet been finalized.
Habib said the loan conditions would likely resemble those tied to the BDH's existing credit line, worth about $163 million, from the Arab Fund for Economic and Social Development, issued in Kuwaiti dinars. Those terms include an interest rate close to 6 percent and repayment periods of up to 20 years.
The new loans would support the purchase of a home, rehabilitation of an existing property, or construction on land already owned by the borrower. They could be available by the end of 2025 or the start of 2026, according to Habib. Unlike current loans, which range between $40,000 and $50,000 depending on income, the new credit line could increase loan amounts to around $100,000.
This initiative would mark Qatar’s second recent commitment to Lebanon on housing issues. On Feb. 19, Habib secured a $100 million pledge from the Qatari government to finance the reconstruction of homes damaged by Israeli strikes.
To date, the BDH has approved 1,404 loans out of 4,377 applications received, though not all applications are complete. Of the approved loans, 1,175 are for home purchases, 132 for renovations, and 97 for new construction.
Habib also said discussions are underway with the Abu Dhabi Fund for Development to secure a similar line of credit.
