More banks join TMRC to facilitate mortgage business financing

INDIVIDUAL Tanzanians who are interested in taking housing loans from banks operating in the country have to sigh a relief following the increased number of banks which have subscribed to Tanzania Mortgage Refinance Company Ltd (TMRC) in order to facilitate mortgage business financing. TMRC's Chief Executive Officer, Rished Bade said early this week in Dar es Salaam that, already 10 banks doing their businesses in the country have subscribed their shares and became members of his company with a view to facilitate mortgage financing business in the country. He mentioned such banks as NMB bank, CRDB bank, TIB bank, AZANIA bank, EXIM bank, DCM bank, Banc ABC, NBC bank and NIC bank. He said in an exclusive interview during the occasion of handing over a cheque worth Tsh. 1 billion raised by NBC Bank to his company being a acquisition of a 10.87 percent stake in TMRC. The occasion took place at NBC Boardroom and was hosted by NBC Managing Director Lawrence Mafuru. He said TMRC's mission is to source funds in Tanzanian financial market as efficiently as possible and channel the same to member banks as a competitive rate. This will facilitate affordable access to housing finance to the Tanzanian population, while contributing to the development of capital markets. NBC is engaged in mortgage financing in the country and this is a long term funding to poor Tanzanians who would like to get the assistances for housing development schemes, and the bank is making everything possible to achieve its targets.

The Chairman of the Bankers Association in Tanzania and the Managing Director of the National ank of Commerce Mr. Laurence Mafuru in an interview with Television crew.

The bank ranks the 10th in a series to join membership with the TMRC to make sure that the individual housing problems in the country comes to an end. The move enables Tanzanians to have easier access to decent accommodation and shows its deligence in supporting the mortgage industry in Tanzania. TMRC is a financial institution owned by the banks which was formed by the Central Bank of Tanzania (BOT) with sole purpose of supporting banks to do mortgage lending by refinancing banks' mortgage portfolios. The institution started with a capital of Tsh. 7.6 billion provided by its share holders with a single shareholder owning more than 33 percent of the equity. Currently the institution is running with Tsh. 9 billion capital plus Tsh. 52 billion given by the government to facilitate the mortgage credit financing facilities. According to CEO, as the balance sheet of TMRC gows, shareholders will be expected to increase their capital in the company. However, he noted that, there is no restrictions on other banks or other eligible institutions to participate in the equity of TMRC. He says banks engaged in mortgaging must have the capacity to pay back the loan taken from TMRC by following the conditions laid down just like any other lending financial institutions in the country. In 2011, NBC along with other six banks signed a mortgage finance deal with the National Housing Corporation (NHC) in order to let Tanzanians have easier access to decent accommodation. Statistics made available by the NHC in the country shows that Tanzania has a housing demand of 200,000 housing units per year, but its supply is 15,000. Therefore with this appalling statistical records which is exacerbated by poverty stricken situation, banks through TMRC are striving hard in order to help cover a wide range of a deficit of more than 185,000 houses.