Bank Hapoalim (TASE: POLI) and the Ministry of Housing and Construction are considering collaborating to encourage young couples to obtain mortgages to buy a home in outlying areas, especially in the Galilee and Negev.
At Bank Hapoalim's national mortgage advisors conference, Minister of Housing and Construction Ariel Atias said that he had spoken on this matter with Bank Hapoalim president and CEO Zion Kenan. "One of my primary objectives is to try to ease the housing shortage for young couples in Israel. Figures indicate that the number of mortgages in outlying areas is falling, which means that fewer young couples bought an apartment. I've proposed plans to bypass this problem, but the door is still closed. I'm committed not to rest and I will continue to press the Ministry of Finance. The plan for massive marketing of land will continue in order to boost the supply and lower prices," Atias said.
Atias added, "Few people can buy an apartment without help from a bank. As government-backed mortgages become more attractive, a citizen's ability to obtain a supplementary mortgage from a bank increases, which is why government intervention is important."
Kenan welcomed Atias' initiatives to greatly expand the marketing of land, zoned for tens of thousands of homes, by the Israel Land Administration (ILA). "We greatly appreciate the housing minister's initiatives to restore government intervention for persons eligible for aid, especially in outlying areas. Bank Hapoalim has been operating its "Poalim eligibility" plan for years, which gives mortgage benefits to bank customers. We'll be happy to consider cooperating with the Ministry of Housing's initiatives for persons eligible for mortgages."
Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2010
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