Latest news with #UmmHussein
Shafaq News
29-06-2025
- Business
- Shafaq News
Out of reach: Iraq's mortgage loans deepen housing crisis
Shafaq News - Baghdad Despite Iraq's persistent housing crisis, many citizens continue to find mortgage loans inaccessible due to what experts describe as overly restrictive lending terms. High interest rates, excessive guarantor requirements, and severe repayment penalties have turned what should be a tool for alleviating the crisis into a burden for much of the population, particularly those with low or moderate incomes. Mortgage loans provided by Iraqi banks bear similarities to those of the Housing Fund but with harsher financial implications. "The Fund helps cover a portion of the increasing housing demand by offering interest-free loans to citizens," Nabil al-Saffar, spokesperson for the Ministry of Construction, Housing, Municipalities and Public Works, told Shafaq News. Each year, it issues between 16,000 and 20,000 loans, depending on the number of applicants and available funds. Distribution is determined by population size and poverty rates in each province, and the fund operates on a self-financing, revolving model. Bank Loans: A Burden, Not a Bridge Still, many citizens report difficulties in accessing these government-supported loans, forcing them to consider bank loans despite their heavy costs. Umm Hussein, one applicant who sought a 50 million dinar ($35,348.11) mortgage from a state bank, disclosed to Shafaq News that she would need to repay 75 million dinars ($53,029.34), with a monthly installment of 635,000 dinars ($448.91). The problem is not limited to high interest. Banks also require two guarantors, a condition that excludes many Iraqis without personal connections or high government ranks. Real estate expert Abdul Salam Hassan Hussein observed that these loans cost 76 million dinars on a 50 million principal, with further increases if payments are delayed. Such conditions, he argued in an interview with our agency, make the loans unattainable for ordinary citizens, noting that housing projects are often priced out of reach, particularly when managed by politically affiliated groups. Inflation Control vs. Housing Access The Central Bank (CBI)'s approach to controlling inflation through high interest rates has compounded the issue. Economist Ahmed Eid noted that borrowing costs reduce the ability of most Iraqis to purchase homes. "For citizens with limited income, home loans become a burden rather than a solution," he explained. The result is a stagnant housing market, especially in projects targeting lower-income segments. Current government estimates indicate that Iraq needs around 200,000 new housing units annually, with a deficit exceeding 2.5 million units. Yet the financial tools in place are not designed to meet that demand. 'Resources are poorly distributed and sometimes redirected to groups with political or militia affiliations,' Eid warned. 'In many cases, loans are misused for non-housing purposes, undermining their developmental intent.' To resolve the crisis, the economist emphasized the importance of synchronizing financial policies with citizens' actual purchasing power. He recommended designing income-based loan programs and stimulating investment in affordable housing. 'Without a clear link between loan terms, income levels, and housing demand, the crisis is unlikely to ease.' New Cities, New Hope Speculation in the real estate market has further distorted prices. Al-Saffar pointed out that brokers and individuals now engage in black market trading of housing units, fueling artificial price inflation. "We cannot curb manipulation unless we inject a large number of units into the market," he asserted. He believes increasing supply will lead to gradual price reductions. As part of a broader strategy, the Ministry of Construction launched new residential cities in cooperation with banks. In these developments, 20% of units will be allocated to the state and distributed to 21 eligible categories. These include public servants, military retirees, families of martyrs, and social welfare beneficiaries. Al-Saffar clarified that the policy prohibits free land grants to investors; instead, a portion of the developed units must be returned to the state. Under the first phase of this initiative, 12,000 housing units from Baghdad's Al-Ward City (Madinat Al Ward) and 10,000 from al-Jawahiri City (Madinat al-Jawahiri) will be transferred to the government. Additional phases are expected to deliver more units for eligible groups. Beyond Buildings: Iraq's Housing Reform Iraq's housing challenge is also shaped by systemic financial barriers, speculation, and unequal policy implementation. Solving this requires more than construction— Eid said that it demands a financial system that supports inclusion, ensures fair distribution, and operates transparently. 'Without such reforms, mortgage loans will remain inaccessible, and the crisis will persist.'
Iraqi News
17-03-2025
- Politics
- Iraqi News
US commends Iraqi Security Forces in fight against ISIS terrorists
Baghdad ( – The U.S. Central Command (CENTCOM) has recently praised Iraqi Intelligence and Security Forces for their successful operation that led to the arrest of Umm Hussein, a Chechen ISIS terrorist and the wife of ISIS commander Abu Khadija. Abu Khadija, a senior ISIS leader, was killed in a targeted strike on March 13. Umm Hussein, an active member of the terrorist organization, was taken into custody as part of Iraq's continued efforts to dismantle ISIS networks. The operation also resulted in the apprehension of two additional ISIS militants. Iraq remains committed to defeating ISIS and preventing its resurgence. The country's ongoing counterterrorism operations highlight its determination to maintain regional security and stability.
