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Pension office, Islamic Bank team up to provide housing down payment

Fathmath Shaahunaz
26 December 2016, MVT 15:19
MPAO’s CEO Mohamed Manik (L) and MIB’s Managing Director Haris Haroon sign agreement to provide down payment for housing loans via retirement pension scheme. PHOTO: NISHAN ALI/MIHAARU
Fathmath Shaahunaz
26 December 2016, MVT 15:19

Maldives Pension Administration Office (MPAO) signed with Maldives Islamic Bank (MIB) on Monday to facilitate down payments on housing loans for members of Maldives Retirement Pension Scheme.

MPAO’s CEO Mohamed Manik and MIB’s Managing Director Haris Haroon signed the agreement at a ceremony held at MPAO office.

Speaking to reporters, CEO Manik explained that the main objective of the agreement is to allow pension scheme members to use their retirement funds for housing loans.

“Every member of the pension scheme can use their pension funds to buy houses and flats if they have sufficient amount in their funds,” he said.

Manik also announced plans to enter into similar arrangements with other banks in the Maldives.

MIB’s MD Haris expressed hopes that the pension funds will aid to meet all the conditions necessary for housing loans.

“We also want to facilitate buying houses for those with lesser income. And so we’re working to provide the easiest and most suitable financing rates,” he said.

Statistics show that 120,000 people are currently participating in the pension scheme, which allows 80 percent of the pension funds to be used to purchase flats or houses.

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