The burden of the national housing movement is on the shoulders of the stock market / Is it possible to finance the national housing through the capital market?
According to Tejarat News, about 18 months have passed since the promise of building 4 million residential units during the four-year term of the 13th government, and not a single unit has been completed yet. The main problem in this field, which was criticized and questioned from the beginning, is the provision of financial resources to advance the projects related to this plan. Now, at the end of the first year of the 13th government’s four-year term, it seems that a solution has been devised for this matter, which, of course, does not seem to work very well!
Due to the lack of financial resources to advance the plan National housing movementThe government is going to prepare a new support package for this sector. For this support package, a number of state-owned banks are supposed to increase their capital, of which Bank Maskan’s share is 10 thousand billion tomans (from the sale of shares of state-owned companies).
In line with this package, the government is going to give shares worth 35 thousand billion tomans to the banks so that by offering these shares in the stock market, the banks can obtain the capital needed to pay for the facility. This amount of money becomes the cash capital of the banks to pay the facilities, and in this way, the applicants can be given loans for the construction of national housing.
Problems of financing from the stock market
Ali Askari, head of Maskan Bank, said in relation to the new support package for the National Housing Movement: “The sale of shares of state-owned companies will begin, and with the increase of capital from this place, the speed of payment of facilities will increase. National housing movement increase.”
Meanwhile, the government has designed a new package relying on the capital market, which is currently at its most stagnant stage. The critical situation of the stock market is the main node that is now in the way of financing the government’s new plan. Currently, the trading situation in the stock market is stagnant, and due to the bitter history of public stock supply, people do not trust in buying these stocks.
Using the power of the private sector instead of the stock market
In this regard, Iraj Rahbar, the head of Tehran Mass Builders Association, believes that the stock market should not be involved in this field.
Regarding replacing a different way from the stock market to finance the national housing project, he told Tejarat News: Private sector liquidity should be used in this area. This housing market expert stated: Why is it not investigated how other countries contract with their private sector? Why don’t we build trust so that capital does not go to foreign countries?
Building villas with the aim of reducing costs
The government has also decided to deliver land and semi-finished houses in order to save construction costs in some cities, for which there are also criticisms. Among other things, the government is currently facing a land dispute even for the construction of apartments. Also, it is not possible to implement this plan in all cities, which will be considered as a discriminatory approach.
Meanwhile, the government is trying to plan National housing movement on paper that economic realities and external potentials show that none of these plans will be viable. On the one hand, the government is trying to follow the path of its predecessor in the capital market and this time indirectly pocket money for its non-expert project, and on the other hand, with the plan to build villas, it will attract cash from applicants for the construction of this failed project. .
This is despite the fact that the capital market is no longer aware of those transactions worth several thousand billion tomans, nor do people have confidence in government stocks to buy them! At the same time, the villa houses that the government promised to build will be delivered to the applicants half-ready, which will impose a new cost on the people.
At the same time, these units are generally placed in inappropriate places, which will repeat the bitter experience of Mehr housing. Now, what will be the next step of the government to provide capital and land in line with the implementation of the national housing movement plan?
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