HOUSING SECTOR

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The Housing Sector Loan Project will assist GOI in meeting its objectives to: (a) expand access to housing finance for low and middle income households; (b) reduce overall subsidies and target the remaining subsidies to the lowest income groups; (c) reduce the reliance of the housing finance system on government funds and introduce new instruments for resource mobilization. In addition, the project will (d) stimulate the production of more low-cost housing by both public and private developers; (e) generate employment at low foreign exchange cost; and (f) strengthen the key institutions in the housing sector, namely Bank Tabungan Negara (BTN) and the National Urban Development Corporation (PERUMNAS). This component will further assist the Office of the State Minister for Housing in developing and monitoring housing sector policies and programs. To achieve these objectives, the project will comprise: (a) a credit line to BTN which would be used to finance a share of total mortgage lending commitments during the last three years of the Fourth National Five-Year Development Plan (Repelita IV); and (b) technical assistance and equipment for BTN, PERUMNAS and the Office of the State Minister for Housing.