USTDA finances mortgage program in Turkey
The US Trade and Development Agency (USTDA) is supporting a feasibility study on developing a mortgage lending program in Turkey. The study will be conducted by a US firm, Fannie Mae, in cooperation with OYAK, Turkey's largest private pension group, which has been working on developing a mortgage lending system.
US Ambassador to Turkey W. Robert Pearson, on behalf of USTDA and Coskun Ulusoy, CEO of OYAK, signed a $256,918 grant agreement for the first phase of a feasibility study. The project is envisioned to occur in parallel with an OYAK housing and town development project. Under the housing development project, OYAK will construct light-gauge steel frame housing units in Ankara and Istanbul.
The proposed mortgage-lending program would enable more people to buy houses with lower interest rates and longer-term loans than are currently available in Turkey. In turn, this will increase the demand for housing construction and building materials, which will help to employ more people and increase business for construction material providers.
The project also has the potential to provide up to $26 million in US services for loan and securities administration over a five-year period. Information technology services and equipment needed to manage these programs, as well as specialized construction components such as steel or wood frames, and insulation materials are also potential US exports.
USTDA advances economic development and US commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. — (menareport.com)
© 2003 Mena Report (www.menareport.com)