2019-04-08

A circular dated April 7, 2019 regarding discounting commercial papers submitted by real estate development companies

In an effort to support the Egyptian economy and its development plans, the Central Bank of Egypt has issued directives regarding real estate development companies, specifically those involved in constructing residential units for sale. These directives include regulations for banking finance and set a maximum limit on the ratio of loan installments for consumer and personal housing loans to individuals' monthly income. The Central Bank's Board of Directors has decided to issue guidelines for discounting commercial papers of real estate development companies without recourse, with conditions such as maintaining a minimum 50% contractual value of the unit and a maximum repayment period of 6 years.

Egypt

Central Bank of Egypt

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