WORKSHOP ON HOUSING FINANCE
JUNE 26-29, 2011
AT ULAANBAATAR, MONGOLIA

Mr. Vishal Goyal, AGM, National Housing Bank reads a message from Mr. R.V. Verma, CMD, National Housing Bank.

Participants of the Workshop on Housing Finance included international housing finance experts from housing finance institutions representing countries viz. Thailand, Philippines, Japan, Azerbaijan, Indonesia, Malaysia and Mongolia besides India.

Representatives from UN-HABITAT, IFC and NHB also took part.

The workshop focused on three main topics, capturing the housing problems faced in Mongolia as well as in other APUHF member countries. These included:

• Housing financing market experience in selected APUHF countries;
• Market-based experience with low-income housing finance; and
• The experience with secondary mortgage market operators.

The topics were treated in form of technical sessions that included presentations from the speakers with subsequent questions and answers. Such approach allowed for a very good exchange among the local and international participants.

Speakers from India, Thailand, Philippines, Japan, Azerbaijan, Indonesia, Malaysia, China and Mongolia shared their experience and knowledge of their countries and respective institutions.

The first technical session was chaired by Mr. O. Chuluunbat, Member of Parliament. Speakers presented the housing situation in India, Thailand and Mongolia. Mr. Vishal from India presented details of the demand driven growth for housing finance in India. He stressed the fact that affordability and accessibility remain major challenges for the low and moderate income population there. A remarkable shift in market focus towards affordable housing can be observed in India. Mr. Ballobh from Thailand presented the case of Government Housing Bank of Thailand. His institution assists Thai people to have their own home. It does so by providing mortgage loans to general public with emphasis on low and middle income groups. The institution operates in the banking system on commercial basis and competes in the free financial market both in funding and lending. The bank does not receive direct-funding or subsidy from the government. In her presentation, Ms. Enkhbayar, CEO of MIK, highlighted the need for a clear Government affordable housing and housing finance strategy. Furthermore she emphasized the need for strong explicit or implicit support by the Government (funding or guarantee) in order to address the affordability issues in Mongolia. The deepening of the secondary mortgage market could help bring long term funding that could relief mortgage loans from banks and convert into securities, hence increase the affordability.

The second technical chair was chaired by Dr. Xing Quan Zhang, Chief, Urban Economy and Social Development Branch, UN-Habitat, Kenya. Speakers from Thailand, Mongolia and Philippines presented approaches and initiatives that address the low-income housing situation in their respective countries. Remarkably enough, the most successful initiatives did not simply aim at providing financial services to the households; rather they offered additional support aiming at strengthening and empowering the local communities.

In the second day of the workshop the third technical session was chaired by Mr. Mr. Narayansamy Kokularupan, former CEO of Cagamas, Malaysia; Consultant Housing Finance. The presentation from Indonesia was held during this session, given that the representatives arrived late due to flight delays. Speakers presented the pre-conditions needed for establishing successful secondary market operators and how these preconditions are met in Mongolia. Furthermore they presented the performance and the role of secondary markets operators in countries like Japan, Azerbaijan and Malaysia and provided lessons learned from their experiences.

Outcome

The event proved to be a great platform for knowledge sharing and exchange of success stories in housing finance, along with the identification of the challenges – existing and to be found in the road ahead.

Housing financing market experiences and low-income housing finance in the Asia Pacific countries made the delegates aware about the existing scenario in the region and actions to be undertaken. Population growth, shortage of dwelling units, limited land and economically weaker section- all these factors are interlinked and need a strategic solution. Also, the ecology and environment are major concerns.

Affordable Housing, Green Housing, Energy Efficient Housing – the answers we have still need further fine tuning and the Mongolia event was one such step in that direction.

CONFERENCE ON AFFORDABLE HOUSING AND HOUSING FINANCE
AND
LAUNCH OF WEBSITE OF Asia Pacific Union For Housing Finance
(Formerly known as South Asia Housing Finance)

Mr. RV Verma, Executive Director, National Housing Bank welcoming the delegates to the Conference on Affordable Housing held in New Delhi on Jan 27 & 28, 2010.

Seated on the dais, from left to right: Mr. Paolo Martelli, Director IFC; Mr. VK Sharma, Executive Director, Reserve Bank of India; Mr. Arun Maira, Member of the Planning Commission; H.E. Abdul Qadeer Fitrat, Governor, Central Bank of Afghanistan; Ms. Kiran Dhingra, Secretary, Ministry of Housing and Urban Poverty Alleviation; Mr.R.Gopalan, Secretary, Financial Sector, Ministry of Finance; Mr. S Sridhar, CMD, NHB AND Mr. Khan Prachuamoboh, President, Government Housing Bank, Bangkok, Thailand

The National Housing Bank (NHB) in association with the World Bank and International Finance Corporation (IFC), organized a International Conference on Affordable Housing and Housing Finance during January 27-28, 2010 at New Delhi. The Conference had participants and Speakers from Afghanistan, Bangladesh, Brazil, India, Indonesia, Maldives, Mauritius, Pakistan, Sri Lanka, South Africa and Thailand besides IFC, World Bank and World Bank Institute, Affordable Housing Institute, ADB, Government of India – Central and State Government Officials, Reserve Bank of India, Banks & Housing Finance Companies. Representatives from Civil Society Organizations, academia, researchers and policy makers also participated in the Conference.

The Conference was preceded by Launch of Asia Pacific Union For Housing Finance (APUHF Forum)(Formerly known as South Asia Housing Finance) , a Knowledge sharing and Information portal, developed by the National Housing Bank. The launch was done by HE Governor Abdul Qadeer Fitrat, of Central Bank of Afghanistan in the presence of the Special Invitees and the delegates of the Conference. The forum intends to promote coalition and coordinatiossn among the South Asia and Asia Pacific countries in exploring and determining their housing and housing finance solutions. The Forum has members from Afghanistan, Pakistan, Sri Lanka, Bangladesh, Thailand, India and is expected to expand and include other Asia and Asia Pacific countries.

The deliberations and the presentations highlighted the Issues and Challenges on Affordable Housing, common to most of the South Asia and Asia Pacific countries. The Conference deliberated on the dynamics of the housing and housing finance market with focus on issues relating to finance, land, technology, construction design, and regulatory framework for effective strategies, innovative products and sustainable programs on affordable housing. The launch of the site is a welcome initiative on the part of the National Housing Bank which plays a lead role in this region.

A number of Presentations were made in the Conference which included international perspectives and policy issues in affordable housing and Low Income Housing Finance, Liquidity and Fiscal Issues and its implication for housing finance, micro housing initiatives, securitization for low income housing, role of construction finance and technology in affordable housing, subprime crisis: causes and lessons etc. The Conference highlighted various successful interventions tried in Brazil, South Africa, Kenya, Thailand, USA and India. The recommendations and deliberations of the Conference are being compiled by NHB and would be soon available on the website.

At the end of the Conference, the first meeting of the Advisory Board of the APUHF was also convened which has representation from the Central Banks of Afghanistan, Pakistan, Bangladesh, Sri Lanka, and National Housing Bank of India. The Government Housing Bank of Thailand was also co-opted in the Group. The APUHF Secretariat is hosted by the National Housing Bank (India).

Speaking on the launch of the website of APUHF, Mr. R.V.Verma, Executive Director, NHB said that we shall try and upscale the platform which will be a very active website for sharing of information, exchange of experiences and success stories among the South Asian countries to address their affordable housing and housing finance problems. This platform will facilitate learning by sharing.

Mr. Verma also added that the conference deliberated on a wide ranging issue associated with affordable housing and housing finance in the South Asia region. The problems relating to housing shortage and affordable housing being largely common across the South Asia reason, the conference was a big opportunity to learn from different countries, their experiences and their successful policies and strategies. He said that we are in the process of finalizing the critical recommendations of the conference and to take them forward for their suitable implementation.

H.E. Abdul Qadeer Fitrat, Governor, Central Bank of Afghanistan addressing the delegates of the Conference on Affordable Housing and Housing Finance after inaugurating the Asia Pacific Union For Housing Finance Website at New Delhi.

World Bank-IFC Conference on Housing Finance in South Asia, Jakarta, May 27-29, 2009