Announcement of IFC Supports Home Financing in Lebanon Invests in Mortgage Lending Institution on November 13, 1974

INTERNATIONAL FINANCE CORPORATION . 1 8 1 8 H STREET. N.W. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC'Press Release No. 74/24 Wednesday, November 13, 1974 IFC Supports Home Financing in Lebanon Invests in Mortgage Lending Institution The International Finance Corporation (IFC), an affiliate of the World Bank, is investing in the equity of a new Lebanese institution that will supply long-term financing to lower-middle and middle-income individual house and apartment buyers and, at the same time, help mobilize domestic medium and long- term savings. The IFC investment is approximately $1.33 million in Bank of the Near East S.A.L. The balance of the Bank's $6.65 million share capital is being taken up by Lebanese and foreign financial institutions and individual. investors. There are numerous financial institutions in Lebanon providing a wide • variety of services with the notable exception of mortgage finance. The Bank of the Near East's participants and the Government authorities have recognized the importance of establishing a specialized institution to meet this need. The Bank of the Near Ea.st is expected to meet part of the substantial demand in Lebanon for housing finance and lead the way for other institutions to enter the field. It is also expected to play a pioneering role in mobilizing longer-term domestic resources by issuing medium and long-term financial in- struments. The IFC commitment is its second in support of financial institutions dedicated to mobilizing domestic savings for housing finance in developing countries. In 1973 the Corporation helped finance a savings and loan bank in Colombia • •