TEHRAN – Iran’s Bank Maskan (Housing Bank) has facilitated installment sales for 91,000 units under the National Housing Movement, using its financial resources, out of a total of 378,000 contracted units, the bank’s CEO said.

Speaking at a press conference on Sunday night, Ali Khorsandian emphasized the importance of housing, calling it a fundamental necessity that has become an unattainable dream for many young Iranians. He noted that while around 20 banks are involved in the National Housing Movement, 90 percent of the financial obligations set by the central bank fall on the Bank Maskan.

Khorsandian said that financing agreements for approximately 378,000 units have been signed under the program, amounting to more than 1.7 quadrillion rials ($3.4 billion). So far, 1.2 quadrillion rials ($2.4 billion) of this funding has been secured and is being disbursed.

Despite financial imbalances, the bank has managed to obtain a credit line from the central bank of Iran (CBI), with the strong backing of the Economy Ministry, he said. Khorsandian added that in the next year’s budget bill, the government has proposed a capital increase of one quadrillion rials ($2 billion) for the Housing Bank, with the support of the Transport and Urban Development Ministry and the Economy Ministry.

He also announced that the bank disbursed 140 trillion rials ($280 million) in interest-free loans in the current Iranian year for marriage and childbirth, in accordance with central bank mandates.

Additionally, the bank’s board has recently introduced a framework to attract small-scale investments while also expanding services to large companies and industrial units. Bank Maskan is also planning to enter supply chain financing for construction materials and leverage the capital market by securitizing its assets, Khorsandian said.

Touching on Iran’s inflationary economy, he noted that despite an increase in housing construction loans from 5.5 billion to 6.5 billion rials ($110,000 to $130,000), the inflation rate in the housing sector remains higher than loan growth. This could pose repayment challenges for borrowers, he cautioned, but stressed that the planned capital increase would significantly support the bank’s commitments.

EF/