Regulatory Alerts2016-11-27
Circular letter dated November 27, 2016 regarding the unified conditions for granting real estate financing to low-income people under the umbrella of the Real Estate Finance Initiative
The letter, dated November 27, 2016, is addressed to the Chairman of the Board of Directors and concerns the Central Bank of Egypt's initiative to provide mortgage financing for low and middle-income individuals. The letter outlines the initiative's updated terms and conditions, including the requirement for unified lending criteria to be followed by banks when offering financing to this demographic. It also addresses the challenges faced by pensioners, beneficiaries, and self-employed individuals in obtaining financing under the initiative due to their variable income levels and the difficulty in providing proof of income. The letter requests strict adherence to the attached terms and conditions, allowing banks a three-month grace period for adjustments.