FROM THE OFFICE OF PUBLIC AFFAIRS

June 3, 2004
JS-1711

Press Statement Under Secretary John Taylor, U.S. Treasury Department
May 27, 2004

Acknowledging the critical contribution of housing finance to the development of economic well being, President George W. Bush announced on July 12, 2003 in Abuja, Nigeria his desire to see mortgage markets developed in Africa.  He requested that Treasury Department Secretary John W. Snow lead a U.S. government initiative to assist African nations to develop their mortgage markets.

To date, the initiative has resulted in almost $50 million in commitments from the Overseas Private Investment Corporation (OPIC) for housing finance related projects in Africa, including $3.5 million in Nigeria.  In addition, the U.S. Treasury, in partnership with Ginnie Mae, is helping to develop plans for primary and secondary mortgage market projects in three countries.

 Today I discussed this initiative at a roundtable meeting at the Federal Mortgage Bank of Nigeria, Abuja, with leading commercial bankers and senior officials engaged in housing finance, to discuss the development of the market and identify where the United States best might provide assistance.

As part of this initiative, I am pleased to announce that the United States Agency for International Development (USAID) will develop a new micro and medium finance program that will address housing, agriculture and small business development for low-income households.  This innovative program will use the Development Credit Authority to leverage lending capital and engage local private sector financial institutions as providers of micro loans.