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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