2016-03-07

A circular dated January 11, 2016 regarding the ratio of the value of the installments due to the individual’s monthly income regarding the loan portfolio for consumer purposes.

In January 11, 2016, the Central Bank of Egypt's Board of Directors decided that banks should limit their loans for personal purposes, including mortgages and consumer loans, outside the scope of Law No. 148 for the year 2001, which was replaced by the Mortgage Law No. 148 for the year 2001. They have decided that these types of loans should not exceed a combined percentage of 35% of their monthly income after tax deductions and social security contributions. This percentage is set to increase to 40% if they are issuing mortgages for residential property in accordance with Law No. 148 for the year 2001. Banks must take this decision into consideration while operating.

Egypt

Central Bank of Egypt

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