Economy, Domestic Economy

Gov’t Vows Expand Lending for Mehr Project

Gov’t Vows Expand Lending for Mehr ProjectGov’t Vows Expand Lending for Mehr Project

The administration has vowed to help increase the ceiling of loans granted to the Mehr housing scheme, as the project awaits some 800 thousand unfinished housing units to be completed.

“The government seeks to finance 50 percent of the total price of the housing units from its own resources,” Mohamamd Pejman, deputy minister of roads and urban development, said in a news conference, as reported by TNA.

The scheme is facing major infrastructure and structural problems, according to the administration officials.

The rise in inflation has added to the problems in recent years, since the project lacks financing, Pejaman said. “The government is now planning to provide the required financing by selling public land.”

The Mehr housing scheme, launched in 2007 by the former administration, was expected to provide two million low-income strata of the society with affordable housing through free land and cheap credits. But the national project slowed down later due to lack of financing.

Despite its opposition to the controversial scheme, the Rouhani administration announced last year that it would go ahead with the construction of the unfinished parts of the project.    

The administration largely blames the scheme for the galloping inflation in recent years.