Regulatory Alerts2019-12-22
Added · Updated
Circular dated December 19, 2019 regarding the real estate financing initiative for middle-income people
The Central Bank of Egypt allocates 50 billion Egyptian pounds for real estate financing targeting middle-income customers at a 10% declining-balance interest rate, with income caps of 40,000 EGP for individuals and 50,000 EGP for families. Eligible units are limited to 150 square meters and 2.25 million EGP, requiring a minimum 20% down payment, while compensation for the interest rate differential is calculated as the discount rate plus 2% minus 10%. The initiative mandates strict creditworthiness assessments, prohibits multiple subsidies per unit, and requires the repayment of subsidies upon early sale or default according to specified percentages.