Mortgage Lending for Slum Clearance

The paper investigates into allocation of treasury funds when major repairs are being funded. Slum clearance is part of major repairs costs. It is shown that mortgage lending can be used to reduce loading on treasury funds and make slum clearance quicker. The world experience in mortgage lending improvement is studied. In particular, mortgage securitization effect is looked into. A model of government co-financing of mortgage lending is proposed. The effect on economic performances due to application of this model is assessed. Guidelines are suggested in order to maintain high quality of the mortgage portfolio.