Israel will sell off about 2.1m small- and medium, medium- and large-sized residential properties in an attempt to reduce its mortgage burden, a government official said Tuesday.
The sales, which would be announced within the next few weeks, would be part of a government-wide initiative to reduce the country’s debt burden by about 30 billion shekels ($1.3 billion) in the coming year, the official said.
The move is part of efforts to curb the countrys spiraling mortgage debt.
“We are selling our property and we will sell it at a discount,” the official, who declined to be named, told The Jerusalem Times.
“We are not looking to sell the entire house, but we want to sell most of it.
I think it is a very good initiative and one that we should pursue.”
The official said the government would sell off properties at a discounted price, but he gave no other details.
The sale of the properties is likely to increase the country s debt burden, but it is expected to be less than 1 percent of its current $1.1 trillion debt, which is about 30 percent of gross domestic product.
The plan would also allow the government to cut the amount of tax it collects from homebuyers, according to a government announcement last week.
In addition to the properties that are being sold, the government is also planning to sell a portion of its existing stock of small-to-medium-sized apartments, as well as apartments with one or two bedrooms.
The government also plans to sell about 2,500 small-sized houses, but the official did not give further details on how much of the total sale of those properties would be in that category.