Mortgage Access

Aug 30, 2012 (LBO) - Sri Lanka's former war zones in the north and the east and areas in the South hit by a tsunami in 2004 will get housing loans from DFCC Vardhana Bank financed by a 15 million US dollar credit from Asian Development Bank. ADB said it the loan from its private sector arm, demand for housing in the north and the east has increased after the end of a 30-year conflict in 2009, which has improved consumer sentiment, increased incomes.

"In order to properly rebuild their lives, Sri Lankans affected by conflict or natural disasters need fair and secure access to home loans," Philip Erquiaga, director general of ADB’s private sector operations department said in a statement.

"A well-functioning mortgage system with greater commercial bank participation will help reach these often underserved borrowers and help close the market gap."

ADB said DFCC Vardhana is a medium-sized bank with a niche strategy to serve the underserved segments. It had a good credit standing and had a 1.3 percent market share of total banking loans in Sri Lanka.

The bank was expanding its network in post-conflict areas and had received technical support from the ADB to improve is mortgage loan operations.

ADB said 5.0 percent of