The World Bank Experience with Housing Finance

Abstract

In the last ten years the World Bank has lent over US$3 billion for housing finance projects. A review of the Bank’s experience with these projects can offer some perspective and insights on when and how such projects can be effective contributors to broader economic policies and the financial deregulation process. A control point of the review is to indicate that while the Bank’s experience is complicated and variable, one maxim, however, remains valid: correctly structured housing finance systems can be expected to significantly improve the mobilization of financial resources, and the effective targeting of subsidies. These improvements, in turn, can help develop the sector so that the social concerns generated by poor housing conditions can be obviated.