Interest free Home loan for civil servants

Algiers- The new measure of the Finance Act 2009, on the home loan at 1% interest, will come into force in the coming days. The credit will be granted to any citizen wishing to buy a home, all forms together, submitted by the public authorities.

• Citizens will benefit in mortgage without interest for the acquisition or extension of a dwelling, as an exceptional measure atken by the public treasury.
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  The government council, chaired by Prime Minister Ahmed Ouyahia, will next Tuesday have to consider the project of two executive decrees to be presented by Finance Minister Karim Djoudi and will be adopted prior to the implementation of the new property development policy adopted by public authorities in order to eradicate the housing crisis in Algeria, facilitating the granting of credit property under conditions and standards set.
  
  
• In this context, and according to sources close to the Ministry of finance, Prime Minister had agreed to that proposed executive decrees to be on the agenda at the government council to be held next Tuesday. The first concerns the conditions and standards of practice relating to bank loans to real estate 1%. The second, will focus on extending credit without interest to civil servants, by the public treasury, which will be destined to the acquisition or expansion of social housing.
  
  
• These measures will be taken by the government, intervene in accordance with Article 109 of the Finance Act 2009, authorizing the Treasury to lower the interest rates granted by banking institutions to acquire housing.
  
  
• In the same context, and in accordance with Article 110 of the Finance Act 2009 further on the direct assistance of citizens to acquire housing or ALDA housing, it will be possible for any citizen who has benefited of a mortgage, claiming the support of the national housing fund, and all possible forms under the new conditions.
  
  
• Only state-owned banks are empowered to grant credit
  
  
• According to information held by Ennahar, only state banks will be empowered to grant housing loans at low interest rates. These will be allocated according to the salary of each beneficiary. The treasury will pay the difference in interest on the loan granted to citizens under the provisions of Executive Order.
  
  
• The government, initially, canceled consumption credit under the supplementary budget law of 2009 and ordered banks to stop this kind of service in order to begin implementing the new policy of housing development.
  
  Ennahar / Mohamed Bousri