Angola APIMA defends reduction of interest rate in real estate market
The chairman of the Association of Real Estate Professionals of Angola (APIMA), Hélder Costa, last week in Luanda reiterated the need to lower interest rates on home loans, making it possible for the majority of the population to have access to decent housing in the country.
Speaking to the press, on the occasion of the laying of the first stone of construction of the “Raiz do Quimbo” housing project, he noted that the interest rates applied by commercial banks “have not helped needy families to get credit”.
Without giving the rate to be applied when granting housing loans, the official said that high interest rates were one of the factors that had strogly stimulated the “slowdown of the real estate market” in the country and made it difficult for the population to have access to housing.
In order to minimise the lack of housing in Angola, the Central Bank of Angola (BNA) last June began operating a mortgage with a subsidised interest rate of 7%.
Under the BNA´s Notice 9/22, of 6 April, the Central Bank makes available 58 billion kwanzas to eligible commercial banks to boost home loans, that is to allow commercial banks to use available compulsory reserves to mitigate the housing shortage among the population.
Out of a population of over 30 million people, Angola only has around 6,200 home loan processes in force in the financial system, which represents the virtual non-existence of this banking product.
According to BNA data, half of the housing credit processes corresponds to loans granted to bank staff, whilst the other 50% are employees of companies that have signed agreements with the commercial banks.