Daniel Nonor
13 January 2009
The Ghana Home Loans, a leading mortgage provider in the country has secured a 15.5m long term facility from FMO, the Hague based Dutch development bank to further help it grow its residential mortgage lending portfolio and improve better access to housing finance for Ghanaians.
The facility allows Ghana home Loans to provide both Cedi and US Dollar based loans to Ghanaians to enable them acquire, complete or improve their homes. Ghana Home Loans is currently the leading mortgage finance institution in Ghana with loan advance and commitments of over $40million.
Dominic Adu, Chief Executive Officer of Ghana Loans who signed the pact on behalf of his outfit said "in light of the worsening global financial crisis, and its consequent negative impact on mortgage funding, we are especially proud to have raised this long term facility for Ghanaians. It shows investor confidence in our business model and further demonstrates Ghana Home Loans' commitment to doing all we can to make housing easier and accessible to Ghanaians".
The Director, Financial Institutions of FMO, Ruurd Brouwer on his part indicated that "the huge gap between demand and supply of affordable housing finance solutions is recognised as one of the biggest challenges in emerging economies. In these turbulent financial times, FMO remains committed to invest in sustainable business models that deliver these housing solutions .our long term facility will capacitate Ghana Home Loans to introduce new innovative products".
IFC, a member of the World Bank Group, last year November acquired an equity stake of approximately 14 percent equity in Ghana Home Loans. The investment was among other things part of IFC's Ghana Mortgage Market Initiative, to strengthen Ghana Home Loan's equity base and to enable the company to develop an additional platform for mortgage lending.
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