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Lend when you can, or else ...
Amlak must restart loans for home buyers otherwise there will soon be no customer left.
- Gulf News
- Published: 23:35 November 20, 2008
Mortgage lender Amlak Finance's decision to temporarily halt lending to new home buyers will have a negative impact on Dubai's real estate market, which is in dire need of cash. The move comes at a time, when the banks have tightened their belts and raised the bar on personal and mortgage loans, understandably due to the liquidity crunch. The decision could further dampen public confidence, if at all anything is left.
Anticipating this scenario, the UAE Government had facilitated Dh120 billion for banks and financial institutions to help businesses and to minimise the impact of the credit crunch on the UAE economy.
However, only Dh25 billion have so far been taken by the institutions.
It is unclear why mortgage lenders like Amlak would shy away from availing the funds.
If Amlak fails to restart lending, it might soon find that there are not enough buyers in the market. Then soon there simply might not be any buyer left.
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