Last update - 00:00 31/01/2007
Government freezes mortgage grants for Ethiopian immigrants
By Ayanawo Farada Sanbatu, Haaretz Correspondent
The Absorption Ministry on Wednesday enacted a two-month freeze on mortgage assistance to immigrants from Ethiopia in an effort to assess the efficacy of the program, which was put into place in 1992.
The ministry's decision will not affect immigrants whose mortgage assistance requests have already been approved.
The measure is intended to curb fraud and price-gouging suffered by immigrants during the process of acquiring apartments.
According to the Absorption Ministry, the reforms will provide counseling and guidance on purchasing apartments, real estate appraisals given by professionals, and an increase of 25 percent in the amount of mortgage assistance.
The Israel Association for Ethiopian Jews expressed their support for the reforms, but said the benefits needed to be upgraded.
On Monday ,Haaretz published the details of a recent decision on the part of the Petah Tikvah local council to prevent Ethiopian immigrants from purchasing apartments in the city's Matzuka neighborhood. The purpose of the decision was to ensure that immigrants are not concentrated solely in the poorer neighborhoods of the city.
The municipality had asked the Absorption Ministry to increase mortgage grants for immigrants, so they could purchase apartments in more desirable areas of the city.