Minister of Housing initiative for assistance to contractors - is implemented

Housing Minister Ariel Atias congratulated the Ministry of Finance and the Bank of Israel who responded to the initiative and announced today (Monday) that they reached an agreement on the mechanism of action of VAT compensation fund for guarantees of the sale law. Thus they are helping to increase the credit for the construction industry.


Atias responded to the news: "I welcome the decision to ease the credit shortage of entrepreneurs through the fund which is finally underway, even if belatedly. The bureaucracy between the sides at the Finance Ministry and between them and the Bank of Israel stuck the process that I initiated for a long time. Establishment of the fund could and should be completed within a few days from receiving the suggestion, and thus begin thousands of housing units that could already be built in the area.

"During the past year I warned many times that despite the dramatic increase in marketing of the land, if there is no funding – there is no construction. In 2012 we reached a peak of 15 years in marketing land for building, and now the potential of the land could be implemented for the benefit of the public, which will also benefit from an increase in housing starts."

Ministry of Construction and Housing is responsible for the supervision and enforcement of the sale law (apartments) by the commissioner of sales law from the enforcement monitor. The law was enacted following the fall of Heftsiba. The Ministry supervises the home buying process to help home buyers - both in securing their money and recognizing their rights.

Today the mechanism which was built was agreed on following the recommendation of the Minister of Construction and Housing Minister Ariel Atias for relief in providing the bank guarantee the construction companies bring up to obtain loans for residential projects. This is, at the rate of 16% of the guarantee under the sale (apartments). Thus, the guarantee of VAT will not be calculated in the industry limit of credit with banks on real estate. This will enable more contractors to enter other construction projects worth billions of shekels.

'בחדרי' גם ברשתות החברתיות - הצטרפו!