BEIRUT, Oct. 3 (Xinhua) -- Lebanon's Central Bank Governor Riad Salameh said Thursday that Kuwait has allocated 170 million U.S. dollars for housing loans in Lebanon, the National News Agency reported.
"Kuwait will offer 170 million dollars as housing loans in Lebanon, but we are waiting for the government's approval," Salameh said during an event in Beirut.
He added that Lebanese banks have also allocated 280 million dollars for housing loans in addition to 100 million dollars of subsidized loans for expatriates who are willing to purchase houses in Lebanon.
The governor believes that all these loans will strengthen the real estate sector and restore confidence in the country's construction market.
Salameh noted that the Lebanese people's savings are going to Greece and Cyprus in a bid to gain access to residency permits or passports from these countries.
"We hope that this situation changes once we work on restoring trust and confidence in the country," he said.
The real estate sector has been suffering for the past few years from a very low demand and a high supply in the market due to economic slowdown and the weak purchasing power of the Lebanese people.
Also, subsidized housing loans that had been previously allocated by the central bank for citizens were depleted.