Lebanon's Public Corporation for Housing (PCH) announced on Sunday that no housing loans applications will be accepted starting July 9.
"Knowing that banks are facing difficulties in approving all housing loans applications which meet all the conditions stipulated by the agreement protocol between the Corporation and the Banks Association, no applications will be accepted starting Monday, July 9, 2018, until further notice," read a statement issued by Rony Lahoud, director general of the PCH.
A few months ago, the Public Corporation for Housing and the Housing Bank stopped processing new applications for subsidized loans due to lack of cash. The Central Bank usually provides funds that allow banks to offer very low interest mortgages to low-income and first-time homebuyers.
Private banks are now offering housing loans with an interest rate of around 6 to 7 percent on loans in U.S. dollar, compared to 3 percent for subsidized loans.