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Housing

Iraq's Prime Minister Directs Adoption of Default Insurance Policy to Simplify Housing Loan Procedures

Strategic Insights

— 1 min read

Prime Minister Mohammed Shia'a al-Sudani has directed the adoption of a default insurance policy as an alternative to the mandatory personal guarantor requirement for real estate and housing unit purchases by government employees whose salaries are deposited in banks. This aims to simplify procedures, reduce complexities, and expand housing loan opportunities. The policy is designed to guarantee the rights of all parties and contribute to strengthening the economic stability of citizens. The Prime Minister has instructed the Higher Committee for Developing the Insurance Sector to finalize the procedures for implementing this decision, which will also include private sector employees whose salaries are deposited in Iraqi banks, subject to certain conditions.

Key Takeaways:

  • The default insurance policy is designed to simplify housing loan procedures, reduce complexities, and expand housing loan opportunities for government and private sector employees.
  • The policy will guarantee the rights of all parties involved and contribute to strengthening the economic stability of citizens.
  • The Higher Committee for Developing the Insurance Sector has been instructed to finalize the procedures for implementing this decision within seven working days.
  • The decision aims to enable employees in both the public and private sectors to obtain affordable and equitable housing finance.
  • The partnership between banks and insurance companies licensed by the Insurance Bureau at the Ministry of Finance will be strengthened to support the construction and housing sector.
  • The government affirms its commitment to continuing reforms aimed at developing the lending and housing environment, which will positively impact the national economy.

Statistics:

  • None mentioned in the source material.

Sources:

  • National Iraqi News Agency, 31 Oct 2025: Prime Minister Mohammed Shia'a al-Sudani has directed the adoption of a default insurance policy...

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