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ECC Approved a Budget of $85 Million for Low-Income Housing

  • Published On 02-Dec-2022
ECC Approved a Budget of $85 Million for Low-Income Housing

               ECC Approved a Budget of $85 Million for Low-Income Housing

A meeting of ECC presided by finance minister approved the launching of a Credit Guarantee Scheme. The approval has taken place under the Credit Guarantee Trust Fund through the Second Supplemental Trust Deed for Low Income Housing.

World Bank has approved a budget of 85 million dollars for the scheme to enhance the risk shield against FIs in the housing sectors.

In order to provide primary mortgage lenders with medium- and long-term funding through the capital debt market at a more affordable rate, Pakistan Mortgage Refinance Company Limited was set up as a joint initiative by the government of Pakistan and Development Finance Institutions (DFIs).

Under the new plan, Pakistan Mortgage Refinance Company Limited (PMRC) will receive 0.25 of the premiums paid by financial institutions to cover their portfolios.

According to the Oversight Committee's recommendations, the Pakistani government has pledged to expand the background arrangement from Rs. 7 billion to Rs. 30 billion if necessary.