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July 4 2022 10:00 AM ˚
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Housing association calls for reduced interest to 3%

Housing workers
(Photo: Envato Elements)
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AMMAN — Head of the Jordan Housing Developer Association, Kamal Al-Awamleh, called for a reduction of interest rates on housing loans to 3 percent for people buying a house for the first time, according to Hala News.اضافة اعلان

Awamleh said the reduction would revive the vital sector and help it to continue growing so that it would support the national economy.

The current interest rate on housing loans is set at around 6.5 percent.

The Central Bank of Jordan said its decision to raise interest rates on all monetary policy instruments by 50 basis points will lead to market stagnation, especially in the housing sector, he said.

He said housing is one of the most important economic sectors in the Kingdom which can absorb labor.

The raised interest will place an added burden on existing borrowers and a significant load on those who borrow for the purpose of purchasing residential apartments, thus having negative macroeconomic implications.

The central bank attributed the decision of raising the interest rate to strengthening the foundation of monetary stability in the Kingdom and maintaining the attractiveness of the Jordanian dinar as the main currency for saving.

It said the raised interest rates would shore up deposits, one of the main pillars of financial stability, and ease the burden of inflationary pressure and the resulting high interest rates prevailing in international and regional financial markets.

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