M1 Group denies
housing loan violations
Loans taken according to Decision no. 7835
M1 Group did not acquire loans from the Housing Bank or those guaranteed by the Public Corporation for Housing (PCH), it said in a statement released today, in response to claims made by the Media Focal Center (MFC).
MFC earlier alleged that M1 Group is one of several politically-backed businesses that are responsible for housing loans running out early this year.
“Individuals from our group applied for housing loans in 2011 and 2013 according to Central Bank Decision No. 7835, issued in 2001,” the statement said.
Decision No. 7835 allows banks to benefit from exemptions on their reserve requirements to provide subsidized loans for productive sectors, including housing.
“The worst thing about this campaign against us is that it shows the chaotic approach towards investment affairs and the absence of protection for corporate rights, which not only discourages investments but also provides a bad example for all investment seekers,” the statement read.
Documents revealed by MFC shows that companies operating under M1 Group took out almost $14 million worth of loans. Public officials have called for a widespread investigation into the subject since the revelation was made.
Reported by Yassmine Alieh
Date Posted: Jul 23, 2018