Circular dated August 19, 2020 regarding the basis of the net unit area in the real estate financing initiative for middle-income people

Cairo: August 19, 2020

To: Mr. Chairman of the Board Tahya Misr Bank Greetings,

With reference to the Central Bank's initiative issued on December 19, 2019, for real estate financing for the middle-income segment at an interest rate of 8% (declining) for a maximum term of 20 years, I would like to inform you that, in light of monitoring the use of the initiative, it was found that it was not activated as expected, and consequently, the target category did not benefit from it. Upon studying the matter, it became clear that one of the most important obstacles to its activation was the lack of clarity regarding whether the area of the unit mentioned as one of the conditions for benefiting from the initiative - at a maximum of 150 square meters - is the net or gross area of the unit.

In order to facilitate work for customers and in light of the proposals submitted by banks, the Board of Directors of the Central Bank of Egypt, in its session held on August 11, 2020, decided the following:

"Amend item (c) of Article (4) included in the detailed conditions and procedures attached to the aforementioned initiative, regarding the maximum area of the financed unit, to read as follows:

The maximum net area of the unit is 150 square meters."

It is emphasized that the net area of the unit must be verified by the bank through the real estate appraiser's report or the unit contract.

Accept my highest regards, Tarek Amer