Regulatory Alerts2021-02-15
Added · Updated
Circular dated February 15, 2021 amending controls and rules of bank financing for real estate development companies
The Central Bank of Egypt amended its October 7, 2007 circular on bank financing for residential real estate development companies. The changes require detailed construction schedules to verify project seriousness and prohibit speculative use of funds. A new provision allows banks to finance land installment arrears for developers facing liquidity shortages, provided the land owner is a government entity and the financing counts toward existing credit limits. Additionally, banks must now deposit all sales proceeds into a dedicated project account used exclusively for project expenses.
Topics
credit
monetary
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