Regulatory Alerts2022-01-01
Board of Directors Resolution No. (7) for the Year 2022
The Financial Regulatory Authority issued Resolution No. 7 of 2022 to amend Resolution No. 111 of 2015, replacing the residential real estate financing cap at ninety percent of the unit or guarantee value. The updated rule permits full-value financing for construction, renovation, or improvement projects while maintaining the ninety percent ceiling, and allows Central Bank of Egypt initiatives for middle- and low-income earners to incorporate maintenance deposit values. This amendment takes effect the day following its publication in the Egyptian Gazette and on the Authority’s official website.
Financial Regulatory Authority
Chairman of the Authority Resolution No. (7) of the Board of Directors of the Authority dated 2022/1/2
Amending Resolution No. (111) of the Board of Directors of the Authority for 2015 regarding the rules and standards for practicing real estate financing activities
Board of Directors of the Financial Regulatory Authority Having reviewed the Real Estate Financing Law issued by Law No. (148) of 2001 and its executive regulations; and Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Resolution No. (111) of the Board of Directors of the Authority for 2015 regarding the rules and standards for practicing real estate financing activities; and after the approval of the Board of Directors in its session held on 2022/1/2;
Resolved: (Article One) The text of Item (First - 1) of Article Eight of Resolution No. (111) of the Board of Directors of the Authority for 2015 regarding the rules and standards for practicing real estate financing activities is replaced with the following:
(Article Eight - First - Item "1"): First: Real Estate Financing for Residential Purposes: The Financier shall, when granting financing for residential purposes, adhere to the following controls: 1- Financing shall not exceed ninety percent of the value of the unit or the provided guarantee, whichever applies; in cases of construction, renovation, or improvement, financing may cover the full value without exceeding ninety percent of the value of the unit or provided guarantee. Furthermore, initiatives offered by the Central Bank of Egypt for middle- and low-income earners may include the maintenance deposit value in the aforementioned percentage, if the initiative's conditions stipulate so.
(Article Two) This Resolution shall be published in the Egyptian Gazette and on the Authority's electronic website, and shall take effect from the day following its publication date in the Egyptian Gazette.
Chairman of the Board of Directors of the Authority Dr. Mohamed Omran
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