KIGALI - Rwanda Development Bank (BRD), yesterday, finalised the takeover of Rwanda Housing Bank (BHR), to promote the mortgage industry in the country, a top government official told The New Times yesterday.
The takeover aims at transforming BHR into a mortgage financing facility,” Finance Minister, John Rwangombwa, said in a phone interview.
“The takeover will make the fund more sustainable with more capital to fund other financial institutions to revamp the mortgage industry in the country. The fund will be managed by BRD,” the minister said.
Rwangombwa further explained that a takeover was the only option instead of the government injecting huge amounts of money in the bank which he said was not worth it.
On Thursday, BRD’s Managing Director, Jack Kayonga told The New Times that the shareholders of both institutions agreed to put together assets and liabilities with a vision to enhance the capacity of BRD.
He added that, through the takeover, BRD will be used as a vehicle to create a mortgage refinancing facility.
“This mortgage refinancing facility will provide the much-needed financial resources to financial institutions to enable them lend to end users and hence increase lending to housing,” Kayonga explained.
BHR’s Managing Director, Gervais Ntanganda, welcomed the move saying “its good news for the two banks coming together and operating as one entity.”
He added that the new fund, under BRD management, will be more efficient and hence more profits and services to citizens.