Algeria’s Green Alliance wants to ban interest on housing loans

The Green Algeria Alliance prepares a draft law proposal to ban interests (Riba) in all loans meant to fund popular projects and suggest alternative solutions to banks, according to deputy Abdenaser Ibn Oum Hani.

“A large number of people can not take advantage from public funding of their projects due to loan interest rates. Many consider them as Riba. Because of that, an illegal immigration phenomenon is increasing and marriage rate is low in our country. Self-immolation is a new phenomenon in the society caused by bad social conditions,” Ibn Oum Hani told Echorouk.

“How can not be possible that the State covers the 1 percent-interest-rate on housing loans? In this case, religion-practicing people found themselves deprived of benefiting from any project,” he added.

The Alliance’s president Naamane Laouer said the proposal amends some laws and gives banks the choice to grant interest-free loans through new forms or the so-called “alternative transactions.”

“The State can raise houses value and ban the 1 percent-interest-rate. In this case, we would have taken off a big hindrance to people who reject loans with interests.”

Religious Affairs Ministry valorizes ban on interest housing loans initiative

Salim Mohamedi, an inspector at the Algerian Religious Affairs Ministry described the Alliance’s initiative as “good”, saying the proposal is confirmed by religion.

“It is a good and nice proposal. Islam calls for that because people will always be bothered by the forbidden interest payment even if they benefit from a house,” he said.

In Islam, Riba (interest) and considered as a major sin.