2008 Press and Releases
OPIC President Mosbacher announces $500 million in mortgage financing to create affordable housing for Palestinians
April 14, 2008
For Immediate Release
Jerusalem
RAMALLAH, West Bank – In a ceremony in Ramallah today, President of the U.S. government’s Overseas Private Investment Corporation (OPIC) Robert Mosbacher, Jr. launched an initiative to provide up to $500 million for a residential mortgage loan program to support the expansion of affordable housing for Palestinians.
“Mortgage finance that is both affordable and accessible is a vital engine for home ownership and economic growth,” Mosbacher said. “This mortgage program will expand mortgage lending to the people who need it most, and in the process provide hope to average Palestinians living in the West Bank.”
OPIC and other project participants signed a Memorandum of Understanding that will lead to the establishment of the Affordable Mortgage and Loan Company (AMAL). AMAL will originate affordable residential mortgages with tenors of up to 25 years for low and middle income Palestinian households.
Under the collaborative framework for financing, OPIC will provide up to a $250 million guaranty. The Palestine Investment Fund (PIF) and the International Finance Corporation (IFC) and the Bank of Palestine (BoP) will each provide up to $75 million.
In addition, the United Kingdom’s Department for International Development (DFID) provide up to $20 million to support AMAL and the Palestine Mortgage and Housing Corporation (PMHC) will provide up to $15 million. Day-to-day staffing and operations of AMAL will be supported by U.S. based organizations.
The agreement to launch the fund was signed by Mr. Mosbacher, Lars Thunnel, IFC's Executive Vice President and CEO (who participated via digital videoconference from Washington) and Dr. Mohammad Mustafa, Chief Executive Officer of the Palestine Investment Fund. Palestinian President Abbas and Prime Minister Fayyad thanked the contributing donors for making this project a reality. Consul General Jake Walles also attended.
Support for the mortgage program is the latest in a series of financial assistance packages by the U.S. government for the Palestinian people, including the 2007 OPIC initiative approved by President George W. Bush to generate $228 million in loans to small and medium Palestinian businesses.
The U.S. government is also actively engaged with the Palestinian Authority to support Prime Minister Fayyad’s Bethlehem Investment Conference, scheduled for mid-May.
For more information please contact the U.S. Consulate’s Press Office at 02-622-6908 or 02-622-6909 or Public Affairs Officer Micaela Schweitzer-Bluhm at 054-678-8456.