The Inter-American Development Bank (IDB) announced recently that it will be loaning the government of Honduras $30 million for the promotion of low-income housing. Most notably, the bank announced that the loan is the first step in a multiphase program that may include a second $30 million loan for the establishment of a microcredit housing fund. The project falls under the IDB’s new Building Opportunity for the Majority initiative. The loan will be repaid over the course of 40 years, with a 10 year grace period. It has an annual interest rate of 1% during the first decade and 2% over the rest of its life. The money will be distributed to low income families as subsidies toward the purchase, construction or renovation of new and existing homes. Additionally, municipal governments will receive subsidies for the development of infrastructure in poverty-stricken areas. Others involved in the project include the World Bank, the Central American Bank for Economic Integration (CABEI), Germany’s Kreditanstalt f̹r Wiederaufbau (KfW) and the Swedish International Development Agency (Sida).
Continue reading “IDB Provides Loan to Honduran Government for Support of Low-Income Housing”
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